Pushing For The Acceleration Of Electric Vehicles, Ministry Of Industry Strives To Develop Battery Swap Technology

JAKARTA - The Ministry of Industry is proactively collaborating with various parties, both from within and outside the country, to accelerate the development of the electric vehicle ecosystem in the country. This strategic step is in line with the goal for Indonesia to become a country that dominates the electric vehicle market.

"We are trying to accelerate the development of an integrated electric vehicle ecosystem from upstream to downstream, so that it becomes an important player in the global supply chain, including efforts to produce vehicles with low carbon emissions and are environmentally friendly," said the Director General of Metal, Machinery, Transportation Equipment and Electronics Industries. (ILMATE) The Ministry of Industry, Taufiek Bawazier in an official statement quoted on Wednesday, June 1.

The Director General of ILMATE explained that the development of electric vehicles is also expected to support the fulfillment of the Indonesian government's commitment to reducing greenhouse gas (GHG) emissions by 29 percent in 2030, and in 2060 it will enter zero carbon emissions or net zero carbon.

"The Indonesian government has shown a strong commitment to play a role in tackling climate change and has set a net zero emission target in 2060 or sooner if it gets international support as agreed at the Conference of Parties (COP26) in Glasgow some time ago," he explained.

In the development of the electric vehicle ecosystem in Indonesia, the Ministry of Industry has collaborated with The New Energy and Industrial Technology Development Organization (NEDO), the Japanese Executing Agency, and the Indonesia R&D Institution.

"We appreciate all of them for their contribution and cooperation so that the demonstration project of an electric motorcycle with swap battery technology can be carried out properly in the midst of the COVID-19 pandemic situation," said Taufiek.

Furthermore, the results of the project study can provide a comprehensive picture of the battery swap business model and its impact on the motor vehicle industry.

"So that it can be used as a reference to support investment in the development of a low-emission and environmentally friendly motor vehicle ecosystem in Indonesia," he added.

Taufiek emphasized that in an effort to develop electric vehicles in Indonesia, the government has issued Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery Electric Vehicle Program for Road Transportation, and Government Regulation Number 74 of 2021 concerning Sales Tax on Luxury Goods. (PPnBM) Motor Vehicles.

“In PP 74/2021, the PPnBM tariff for vehicles with zero emission technology such as Battery Electric Vehicles (BEV) and Fuel Cell Electric Vehicles (FCEV) domestically produced will be given at 0 percent with the fulfillment of requirements related to deepening of manufacturing and/or the level of components in the domestic industry. State (TKDN)," he said.

In addition, the Ministry of Industry has issued Regulation of the Minister of Industry Number 36 of 2021 concerning Low Carbon Emission Four-Wheel Motor Vehicles. This regulation regulates the requirements for the LCEV program such as investment, deepening of manufacturing or TKDN, as well as other technical aspects of vehicles.

Taufiek is optimistic that the automotive industry will continue to support the acceleration of national economic recovery. This is reflected in the performance of the transportation equipment industry which experienced the highest growth in the first quarter of 2022, with an achievement of 14.2 percent yoy.

"Along with the brilliant automotive performance, the non-oil and gas processing industry was able to record growth of 5.47 percent or higher than the national economic growth which reached 5.01 percent in the first quarter of 2022," he said.