Indonesia Commitment To Build Green EV Industry

Electric vehicle (Photo: dock. Antara)

JAKARTA - The Indonesian government is committed to building an electric vehicle (EV) industry with a green industry. Especially, in processing nickel as raw material for electric vehicle batteries.

"The government's initiative exists (to build a green industry), with restrictions and taxes on carbon emissions to be implemented this year, and at the same time new coal-fired power plants have been banned," said Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan quoting Antara.

He said that these efforts were made so that the nickel processing industry in Indonesia could become more environmentally friendly, considering that now there are still many smelters fueled by coal.

However, he does not deny that the realization of the green transition program depends on the availability of capital, one of which is obtained through export revenue processed nickel and foreign direct foreign investment for the construction of a smelter factory.

He also regretted the objection to Indonesia's nickel export products submitted by United States (US) senators regarding environmental problems because coal is still being used as fuel for smelters.

In an article released May 1 on the website of Foreign Policy magazine, Luhut said that this was an unwise act because it could hinder the affordability of nickel supply for the electric vehicle industry in the US itself.

This is considering that Indonesia has the largest nickel reserves in the world. In addition, the use of electric vehicles can provide clean carbon benefits for the US.

"In order to significantly reduce emissions in the US, the US people must use electric-powered vehicles more. The transportation sector is the country's largest emittance producer, while now less than 1 percent of vehicles in the US are electric vehicles," he said.

Furthermore, he considered that the objection was not only based on environmental issues, but also trade wars and the struggle for influence between the US and China.

In fact, the nickel and electric vehicle industry in Indonesia not only gets investment from Chinese companies, but also from various industry players from South Korea and even the US.

Luhut said that if the US decides to impose a comprehensive ban on Indonesian nickel just because of the presence of other countries in the industry, this contradicts US Treasury Secretary Janet Yellen's statement that US allies in the Indo-Pacific should not be forced to choose between China or the US.

Indonesia wants to partner with all parties. It's up to the US government whether to shake hands to create a greener future or not. However, Indonesia will not wait indefinitely," he said.