Friday, 18 October 2024 04:29

Indonesia's Electric Vehicle Strategy: Paving the Way for Economic Transformation

Indonesia's aspiration for economic sovereignty is becoming increasingly tangible, with critical aspects of national development aligning with the Vision of Indonesia 2045. The National Development Planning Agency (Bappenas) has outlined a roadmap in the National Long-Term Development Plan (RPJPN) 2025-2045, encompassing 17 goals, 8 development agendas, and 45 indicators. Among these, economic transformation and socio-cultural resilience emerge as key focus areas, further distilled into three main aspects: productivity linked to science, technology, innovation, and economics; the adoption of a green economy; and the enhancement of environmental and societal quality. The immediate goal of this economic transformation is to elevate Indonesia from the middle-income trap, with a structured approach planned over the next 20 years in four phases, as part of the National Medium-Term Development Plan (RPJMN).


In the first phase, targeted for 2025-2029, the emphasis is on reinforcing the foundations of this transformation, according to Nizhar Marizi, Director of Energy, Mineral, and Mining Resources at Bappenas. The Jokowi administration prioritizes downstream activities across three natural resource sectors: agriculture, mining, and marine resources, with mining downstreaming gaining particular traction. President-elect Prabowo Subianto's "Asta Cita" mission highlights the continuation of downstreaming and industrialization to enhance domestic value addition. Notably, Indonesia's mining transformation has significantly boosted export values, particularly for nickel, which surged from USD 2.9 billion (Rp 45 trillion) in 2020 to USD 34.5 billion (Rp 537 trillion) in 2023. With the recent inauguration of Southeast Asia's largest battery cell factory in Karawang, a joint investment by Hyundai Motor Group and LG Energy Solution, Indonesia is poised to play a vital role in the global electric vehicle ecosystem. This collaboration not only supports regional electric vehicle markets but also aligns with Indonesia's goal of achieving net-zero emissions by 2060, emphasizing the dual objectives of economic growth and environmental sustainability.

Source: https://www.antaranews.com/berita/4400741/kendaraan-listrik-dalam-transformasi-ekonomi

 

 

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