Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that Indonesia has nine companies that support the battery industry that will also support electric vehicles.
The nine companies are five companies providing raw materials for batteries consisting of pure nickel, pure cobalt, ferrous nickel, mixed hydroxide deposits, and others; and four companies are battery manufacturers.
"Thus, Indonesia is able to support the battery supply chain for electric vehicles starting from raw materials, refineries, battery cell manufacturing and battery assembly, manufacturing electric vehicles or Electric Vehicles (EV), to EV recycling," said the Minister of Industry while attending the Investor Daily Summit. 2021 virtually in Jakarta, Wednesday.
The Minister of Industry explained that the Indonesian government is encouraging the transportation industry through the National Industrial Development Plan, which sets out its vision to become a major player in the global automotive industry. The Transportation Equipment Industry Becomes a Priority in the 2015-2035 National Industrial Development Master Plan.
Indonesia stipulates an EV Development Roadmap through Minister of Industry Regulation Number 27 of 2020 concerning Technical Specifications, EV Roadmap and Calculation of Local Content Levels. Indonesia is targeting to develop the EV Main Component Industry (Battery, Electric Motor and Inverter).
According to Agus, the global demand for EVs in the world is expected to continue to increase and reach around 55 million EVs in 2040.
"This growth leads to an increase in the need for lithium ion (LIB) batteries and it is estimated that by 2030 there will be a capacity of more than 500 GWh for this EV," said Agus.
The increasing use of batteries also encourages an increase in their raw materials, namely nickel, cobalt, lithium, and manganese.
The Minister of Industry assessed that, in a certain position, the owner of this battery raw material source will later play a very important role.
Given that Indonesia is the largest automotive sales and production market in ASEAN in the automotive business and is projected to grow by 2 million production by 2025, this could be an opportunity to develop EVs.
As such, the battery will be the most valuable component in an EV, representing 35 percent of the cost of manufacturing an EV.
The main advantage of EV manufacturing in Indonesia is the battery made from nickel-based Lithium Ion Batteries.
"This is supported by Indonesia's ability to provide resources because Indonesia has the largest nickel reserves globally," said the Minister of Industry.
