Administrative Infrastructure Pede, Pertamina Ready To Develop EV Battery Ecosystems

Pertamina President Director Nicke Widyawati. (Photo: Doc. Antara)

JAKARTA - President Director of PT Pertamina (Persero), Nicke Widyawati is determined to support the government in developing an electric vehicle ecosystem in Indonesia.

We believe with nickel reserves in Indonesia, we can produce batteries and increase EV penetration, Nicke Widyawati at the Indonesian Pavilion, World Economic Forum, at the Davos quoted Monday, January 23.

Nicke said Pertamina has infrastructure that can be optimized for EV penetration and has data on characteristic segmentation, mobility, and purchasing ability.

In addition, Pertamina also has more than 7,400 gas stations, 6,100 Pertashops, and 63,000 LPG outlets. Pertamina is also ready to collaborate with other parties from various countries to develop EV batteries and optimize its infrastructure.

This commitment is in line with the recommendations submitted by the B20 Energy, Sustainability and Climate Task Force (Business 20-Task Force Energy, Sustainability, and Climate / B20-TF ESC), one of which is submitting policy recommendations to accelerate the development of the electric vehicle ecosystem (EV).

"We propose some policy recommendations and policy actions, especially how to accelerate EV penetration in every country," said Nick.

In an event with the theme Indonesia Economic Development Through Downstream Industries and Inclusive Partnership, Nicke revealed that the policy recommendations include accelerating the use of sustainable energy, ensuring a just and affordable transition, and increasing energy security.

To accelerate the use of sustainable energy, said Widyawati, Pertamina targets energy efficiency, with electrification being a determining factor for success.

"There is an energy efficiency target on the demand side, how to manage energy efficiency in terms of demand, and we believe electrification is a key factor in success," he said.

In addition, Nicke also highlighted the need for financing, especially from developed countries, considering that the energy transition to renewable energy requires a very large capital investment. So that investment support from developed countries is needed.

Then, the second policy recommendation, is the need to ensure a just and affordable transition. In this recommendation, Nicke highlighted the need to prepare a just transition from sectors affected by the energy transition to related sectors. He mentioned the need to ensure sustainable practices in mineral access to build new energy infrastructure that is clean and low in carbon, including electric vehicles.

Then the third recommendation is the need to increase energy security. We need a framework and regulations such as incentives to promote and accelerate the EV ecosystem," said Nicke.

The B20-TF ESC is a business community that supports the G20 with policy recommendations that impact and can be followed up from a business aspect. Having more than 150 members, with eight co-chairs elected from several countries with different types of energy.

Meanwhile, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) of the Republic of Indonesia, Bahlil Lahadalia, said that the development of the EV ecosystem in Indonesia had begun by involving foreign companies and BUMN, including Pertamina.

There are at least four companies that have investment plans in Indonesia to support EV development, including LG, CATL, Foxconn, and BritishVolt.

According to Lahadalia, the government welcomes investors who are serious about coming to Indonesia by providing convenience in licensing facilities and tax incentives.