Deputy Minister of Trade Jerry Sambuaga highlights Indonesia's success in maintaining economic resilience and political stability, fostering significant potential for the electric vehicle (EV) industry. Despite global economic complexities, Indonesia's favorable economic growth and political stability provide an opportune environment. Indonesia's trade surplus reached USD 4.47 billion in March 2024, marking 47 consecutive months of surplus since May 2020. Strategic policies, such as nickel downstreaming, contribute to economic value addition, job creation, and bolstering Indonesia's position in the global supply chain. The government's emphasis on technology development to reduce pollution and fossil fuel dependency, utilizing Indonesia's abundant nickel resources, positions the nation as a potential EV production hub in Asia.
Bloomberg NEF ranks Indonesia 22nd out of 30 countries in enhancing its investment attractiveness in the electric battery supply chain ecosystem, considering aspects like industry, innovation, and infrastructure. Factors like raw material availability, battery manufacturing, downstream sector demand, and environmental policies influence this ranking. Indonesia's commitment to increasing its emission reduction target from 29% to 31.89% underlines its transition efforts, unlocking USD 3.5 trillion investment opportunities and fostering global economic integration. Furthermore, Indonesia's progression towards OECD membership, coupled with its status as Southeast Asia's largest economy, enhances the organization's profile and significance, facilitating broader economic cooperation. Through these initiatives, Indonesia aims to solidify its position in the global economy while addressing environmental concerns and promoting sustainable development.
