Ready To Join The Global Electrification Era, There Is One Leading Manufacturer That Will Invest In Indonesia

Illustration of various modes of electric transportation. (Photo: Freepik)

Jakarta - Vehicle electrification is becoming a global trend that is increasingly fast, and Indonesia is ready to follow this step. The whole world is now preparing to face the era of electric cars, including Indonesia.

Many countries and automotive manufacturers have invested in this technology. Indonesia also does not want to be left behind, with plans to produce millions of electric vehicles in the future. This readiness is marked by the interest of foreign manufacturers who want to invest in Indonesia, as recently reported by the Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia. With the investment and supply of adequate raw materials, Indonesia is on the right track in welcoming the global electrification era.

Recently, the Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia (Menko Marves), Luhut Binsar Pandjaitan, reported to President Joko Widodo that there is one leading electric car manufacturer ready to invest in Indonesia.

"Last week, we received an investment proposal from one of the world's leading electric car manufacturers to build factories and distribution networks in Indonesia," Luhut said at a groundbreaking event for a copper foil factory in Gresik, East Java, broadcast via the Presidential Secretariat's YouTube, on Tuesday, June 20.

Although Luhut did not mention which brands would invest in Indonesia, based on the proposal received, the manufacturer plans to invest US$1.3 billion or around Rp. 19.5 trillion.

The manufacturer requested assistance to obtain copper supply, considering that Indonesia has abundant copper reserves. This is very important because the electric cars to be produced by the manufacturer will be in accordance with the preferences of the Indonesian people and have affordable prices.

In the development of electric cars, raw materials such as copper are a priority to accelerate the development of electric cars in Indonesia. For example, an electric car requires about 56 kg of copper, without taking into account the need for copper for electric vehicle batteries. Therefore, the construction of a copper processing plant integrated with the tin, nickel, cobalt, and bauxite industries is very important. This is also in line with Indonesia's target to produce millions of electric vehicles in the future.

In addition, Indonesia has a goal of achieving carbon neutrality by 100 percent and zero emissions by 2060. This will also be accompanied by a reduction in sales of fueled cars in the future.