Jokowi's Target: In 4 Years, Indonesia Becomes The Largest Electric Vehicle Manufacturer

President Joko Widodo

JAKARTA - President Joko Widodo (Jokowi) targets Indonesia to become the largest electric vehicle producer in the world within the next three to four years. This is because Indonesia has large nickel reserves. As is known, nickel is the main raw material for lithium batteries.

Furthermore, Jokowi explained that the effort to make Indonesia the largest electric vehicle industry is to provide added value from nickel mining commodities. According to him, the downstream nickel industry will significantly increase the added value of nickel ore.

Jokowi said, if nickel is processed into battery cells, its value can increase six to seven times. Then, if it is developed into an electric car, the added value will increase again, which is 11 times.

"Indonesia has the largest nickel reserves in the world with tremendous potential. I am sure that in the next three to four years, through good management, good management will be able to become a major producer of nickel-based finished goods such as lithium batteries, electric batteries, electric vehicle batteries", he said during the groundbreaking activity for the electric vehicle battery industry in Karawang, West Java, Wednesday, September 15.

The trend in the future, said Jokowi, would be to leave oil-fueled vehicles and switch to electric vehicles. This is indicated by the large number of investments shifting to industries that are more environmentally friendly. One of them is Hyundai Motor Group and LG Energy Solution which invested USD 1.1 billion in capital.

Jokowi said this investment is a seriousness from the company to leave dirty energy and switch to environmentally friendly energy.

"The construction of this factory is a manifestation of the government's seriousness in downstreaming the industry. The glorious era of raw material commodities is over and we must dare to change the economic structure that has been commodity-based to go downstream into industrialization to become a strong industrial country", he said.

In addition, Jokowi said the government will continue to make efforts as soon as possible to get out of countries that export raw materials. This includes removing dependence on imports from developed countries.

"Therefore, the strategy of big state business is to get out as soon as possible from the trap of raw material exporting countries by accelerating the revitalization of the processing industry, so that it can provide higher added economic value", he said.