G20 Presidency Momentum Indonesia Promotes Electric Vehicles

Online motorcycle taxi drivers exchange electric motorcycle batteries at the General Electric Vehicle Battery Exchange Station (SPBKLU) at Pertamina gas stations, Jalan MT Haryono, Jakarta (ANTARA FOTO/M RISYAL HIDAYAT)

JAKARTA - Energy Watch Executive Director Mamit Setiawan said that the G20 Presidency could be a promotional event for Indonesia as a major player in the development of electric vehicles, given the abundant nickel potential, which is the main component of electric vehicle batteries.

"Furthermore, there will be support from the international community because they are committed to providing assistance to Indonesia so that the transition process can run as quickly as possible," Mamit said in a written statement quoted by Antara, Wednesday, March 9.

Mamit explained that without international assistance, Indonesia would find it difficult to develop electric vehicles due to funding constraints.

He also does not deny that the transition to the use of new and renewable energy still has a lot of homework. However, Indonesia can push for a commitment to accelerate the energy transition through progressive policies through the G20 Presidency forum.

"Indonesia has a fairly large source of energy, especially renewable energy which is very large and we can optimize this," said Mamit.

Currently, Indonesia still relies on steam power plants for about 65 to 70 percent of its energy sources, so the government needs to think early on efforts to reduce dependence on fossil energy.

Mamit said that the G20 Presidency could be a momentum for Indonesia to get funding support in order to facilitate plans for the use of new and renewable energy.

"We have to be optimistic because the government's policies related to new and renewable energy are massive, with policies that are currently leading to green energy. Likewise, a new renewable energy bill is being drafted which will certainly provide legal certainty for investors to invest in energy. newly renewed to Indonesia," he explained.

Currently, stakeholders are accelerating the achievement of the national mix target by 2025. The national mix consists of 23 percent of new and renewable energy, 22 percent of natural gas, 25 percent of oil and 30 percent of coal.

In 2020, the new renewable energy mix figure is 11.20 percent, natural gas is 19.16 percent, oil is 31.60 percent, and coal is 38.04 percent.

Previously, the Ministry of Industry had stated that it was preparing a strategy to become a major player in the global electric vehicle industry by setting a roadmap for the development of electric vehicles in Indonesia as stated in the Minister of Industry Regulation Number 27 of 2020.

The government is also targeting to develop the main component industry for electric vehicles, starting from batteries, electric motors, and inverters.

"Demand for electric vehicles is estimated to reach 55 million units by 2040. This condition is believed to have contributed to the need for the main components of electric vehicles," concluded Mamit.