Faisal Basri: Indonesia Dreams Of Becoming A Major Producer Of Electric Cars, Even Approaching Nonsense

Indef's senior economist, Faisal Basri. (Photo: Doc. Antara)

JAKARTA - Senior economist Faisal Basri said that even though Indonesia has a nickel mine, it does not automatically dominate the market because what the electric car industry and its supporting components need is a business climate that allows for more added value.

"There is an impression that all products must be made for electric vehicles, such as local content. No country suddenly becomes an industrialized country that is superior in automotive, Japan and Germany need hundreds of years to produce the current conditions", he said in an online discussion of Post-Leaders Economic Opportunities Summit on Climate monitored in Jakarta, quoted from Antara, Wednesday, April 28.

He suggested that Indonesia be part of the global supply chain by selecting components that can provide the highest added value.

"If you suddenly want to become a major producer of electric cars, such a dream is approaching nonsense", joked Faisal.

He revealed that China has now repented of being the largest manufacturing center in the world because the added value enjoyed by the country is the least.

Apple iPod products, for example, China only get 7 percent of the total value of these devices. Meanwhile, South Korea, which supplied the screen, and Taiwan, which supplied the processor, enjoyed the biggest profit.

"If we prepare the infrastructure, then undoubtedly there will be more opportunities than threats. The task of the state is to bring about this energy transition so as not to cause shock and unemployment", said Faisal.

He further asked the government to focus on electric vehicle components that can be developed domestically, not the electric car industry as a whole.

"Doctoral experts in electric cars are relatively limited. We have to make choices and from now on we build the infrastructure so that it will give maximum results for the welfare of the people", concluded Faisal.