Indonesia Targets Production of 600,000 EV Batteries by 2030

Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan (Photo: dock. Antara)

JAKARTA - Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan said that Indonesia is targeting the production of 600,000 electric vehicle batteries by 2030.

This was stated by Luhut in his remarks at the inauguration of the South Korean Battery and Electric Vehicle Ecosystem in Indonesia which was held today.

According to him, this event marks an important milestone in Indonesia's journey towards sustainable development and technological progress by inaugurating the lithium battery and EV ecosystem in Indonesia.

"Indonesia has a target of 600,000 BEV battery production capacity in 2030 so that the production of (Hyundai) Kona Electric 50 will be 50,000 units per year," said Luhut, Wednesday, July 3.

Just so you know, this is in line with the Regulation of the Minister of Industry (Permenperin) No. 28 of 2023 concerning amendments to Permenperin No. 6 of 2022 concerning the roadmap for battery-based electric motor vehicles. The regulation states that the target for developing the KLBB industry for four wheels and more is to reach 400,000 units in 2025 and 600,000 units in 2030, and 1 million units in 2035.

Luhut said that this production is estimated to reduce CO2 emissions by around 160,000 tons per year and will also reduce fuel imports by 45 million liters per year, as well as fuel subsidy savings of up to IDR 131 billion per year. Luhut also ensured that the number would increase along with the number of vehicles in circulation.

"In addition, with the use of domestically produced LG batteries in the Kona Electric, the TKDN value of KBLBB which was initially 40 percent has increased much higher to 80 percent. This is an initial step to encourage an increase in the added value of the domestic industry," said Luhut.

Luhut also reported that global demand for electric vehicles is growing at an unprecedented rate and lithium batteries are at the heart of this astonishing transformation.

According to him, this is thanks to the utilization of Indonesia's rich natural resources (SDA) and investment steps in high and cutting-edge technology.

"Indonesia is ready to become a key player in the global supply chain of electric vehicles from upstream to downstream," Luhut added.

With an integrated ecosystem and involving international stakeholders, Luhut said, this strategic step will not only improve the Indonesian economy, but also create thousands of jobs, encourage innovation, and develop skills among the workforce.