Having Raw Materials To Markets, Bahlil Pede Indonesia Becomes A Pioneer Of The EV Battery Ecosystem

Minister of Energy and Mineral Resources Bahlil Lahadalia. (Photo: Maria Trisnawati/VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia is optimistic that Indonesia will become a pioneer in the development of an integrated electric vehicle battery ecosystem from upstream to downstream.

The government is also targeting the construction of a Solar Power Plant (PLTS) with a capacity of 100 GW which will become a large market for the domestic battery industry.

Moreover, he said, soon the Indonesian consortium through PT Aneka Tambang Tbk and IBC together with Huayou will run with a total investment of around US$8 billion.

"Well, if this is all finished, we are targeting the final 2027, this is all finished. So Indonesia will be one of the first countries to build an integrated car battery ecosystem from upstream to downstream," said Bahlil, Tuesday, August 5.

This is in line with the Government's program towards Net Zero Emission (NZE) in 2060, including carrying out President Prabowo Subianto's direction for downstreaming and accelerating the development of the electric car industry.

Not only that, the use of new and renewable energy (EBT) for electricity is also a priority that will open up opportunities for the domestic battery industry.

"And we ask all of these batteries for electricity to use Indonesian products. This is a big market. And this will encourage the availability of electricity for the Red and White Cooperative. Because we will use electric tracks. We will use electric motors. And this is at the same time to encourage energy transition and energy sovereignty," he said.

With the battery ecosystem for electric vehicles, Indonesia can be the main goal of efficient investment, because the raw materials and ecosystems are already available.

"There is no reason, in my opinion, not to make efficient investments in Indonesia. The market is there, the raw materials are there, the ecosystem is already there, the new energy is already there," said Bahlil.

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Regarding downstreaming which is the Government's flagship program, Bahlil said that downstreaming will trigger economic growth which has been targeted at 8 percent in 2029.

Downstreaming is also said to encourage job creation, leading to equitable economic zones, and increasing state revenues.