Luhut: Without Indonesia, US Target To Increase EV 11 Times To 2030 Is Impossible

Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan (Photo: Doc. VOI)

Coordinating Minister for Maritime Affairs and Investment (Menkomarinves) Luhut Binsar Pandjaitan revealed that currently the United States has ambitions to increase the Electric Vehicle (EV) industry in its country by 11 percent by 2030.

Responding to this, Luhut said this target was impossible for America without Indonesia. The reason is, currently Indonesia holds 70 percent of the nickel ore supply in the world.

"Without Indonesia it would not be possible. And I also convey this to my friends in America, I say it is impossible for you to increase 11 times what is now without Indonesia," Luhut said in MINDIALogue which was held in Jakarta, Thursday, June 20.

Moreover, currently, America is starting to implement an Inflation Reduction Act (IRA) policy which will affect the discriminatory treatment obtained by Indonesia's nickel proque in the eyes of the world.

Just so you know, currently many Indonesian nickel products are not included in the IRA Law because they are dominantly produced from smelters built by Chinese companies.

"We have to be offensive too, we are not a country that you can manage! We have the establishment to survive," added Luhut.

As a country that supplies most of the world's nickel supply, Luhut pede Indonesia has an important role in the development of the world's EV ecosystem. Luhut also said that in global trade, there are three bear countries that are the main players, namely China, the United States and the European Union.

"And a large market is ASEAN. ASEAN is Indonesia, which is the largest there. I think our exports last year were almost 40 billion dollars. And I think in 2030 we will be from this downstreaming, we will be able to export up to 70 billion dollars. That gives us the power. That's just from nickel ore, because nickel ore we can build an ecosystem," concluded Luhut.