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Kamis, Maret 17, 2022

Minister of Industry: Indonesia Set to Become Key Player in Global Electric Vehicle Industry Ecosystem

Manufacturing & Industry

Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, is optimistic that Indonesia’s automotive industry will become an important player in the global supply chain, including through the production of electric cars. Mr. Kartasasmita has revealed that the government is becoming increasingly serious in its ambition to develop the country’s electric vehicle industry ecosystem, both upstream and downstream, through increasing investment aimed at strengthening Indonesia’s electric vehicle manufacturing base. Downstream policy will be implemented as part of efforts aimed at increasing the added value of Indonesia’s mineral resources and, in turn, the overall welfare of its citizens.
According to Mr. Kartasasmita, the year 2022 should be a pivotal moment in terms of the development of lithium batteries for use in electric vehicles, as several investors are set to commence construction of factories in Indonesia that will ultimately process nickel and cobalt into raw materials for use in lithium batteries. In this regard, the government is hoping that electric cars produced in Indonesia will already be utilizing domestically produced electric batteries and other important components by 2024.
Under the national automotive industry roadmap, electric battery-based vehicles should make up 20% of total vehicles sold by 2025, in line with the automotive industry’s growing push for increasingly efficient internal combustion engines (ICE), hybrids and plug-in hybrid technologies. In addition, hydrogen-based, fuel-cell technologies also feature on the aforementioned roadmap and are set for future implementation.
In terms of the development of the electric vehicle industry ecosystem, the domestic automotive industry is targeting the production of 600,000 electric cars and electric buses by 2030, ultimately reducing fuel consumption by 3 million barrels and CO₂ emissions by 1.4 million tons per annum.
President Joko Widodo recently inaugurated the launch of the IONIQ 5, an electric car produced by PT Hyundai Motor Manufacturing Indonesia. The Hyundai IONIQ 5 is the first electric car to be made in Indonesia and represents an important milestone in the development of electric cars in the country, as well as supporting the development of Indonesia’s electric vehicle ecosystem, which is becoming increasingly sophisticated and globally competitive.
The government will also continue to encourage improvements in the use of local components in electric vehicles by providing incentives and reducing various regulatory barriers. It is hoped that these measures will expand the upstream electric vehicle industry while creating new jobs and generating import substitutions. Four regulations currently support the development of electric vehicles in Indonesia, namely: 1) Regulation of the Government No. 74 of 2021 on the Amendment to Regulation of the Government No. 73 of 2019 on Taxable Goods Classified as Luxury Goods in the Form of Motor Vehicles Subject to Luxury-Goods Sales Tax; 2) Regulation of the President No. 55 of 2019 on the Acceleration of the Battery-Powered Electric Motor Vehicles for Road Transportation Program; 3) Regulation of the Minister of Industry No. 36 of 2021 on Low-Carbon-Emission Four-Wheeled Vehicles; and 4) Regulation of the Minister of Industry No. 7 of 2022 on the Degradability of Completely Knocked Down and Incompletely Knocked Down Battery-Powered Electric Vehicles. _(KEMENPERIN)

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Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, is optimistic that Indonesia’s automotive industry will become an important player in the global supply chain, including through the production of electric cars. Mr. Kartasasmita has revealed that the government is becoming increasingly serious in its ambition to develop the country’s electric vehicle industry ecosystem, both upstream and downstream, through increasing investment aimed at strengthening Indonesia’s electric vehicle manufacturing base. Downstream policy will be implemented as part of efforts aimed at increasing the added value of Indonesia’s mineral resources and, in turn, the overall welfare of its citizens.
According to Mr. Kartasasmita, the year 2022 should be a pivotal moment in terms of the development of lithium batteries for use in electric vehicles, as several investors are set to commence construction of factories in Indonesia that will ultimately process nickel and cobalt into raw materials for use in lithium batteries. In this regard, the government is hoping that electric cars produced in Indonesia will already be utilizing domestically produced electric batteries and other important components by 2024.
Under the national automotive industry roadmap, electric battery-based vehicles should make up 20% of total vehicles sold by 2025, in line with the automotive industry’s growing push for increasingly efficient internal combustion engines (ICE), hybrids and plug-in hybrid technologies. In addition, hydrogen-based, fuel-cell technologies also feature on the aforementioned roadmap and are set for future implementation.
In terms of the development of the electric vehicle industry ecosystem, the domestic automotive industry is targeting the production of 600,000 electric cars and electric buses by 2030, ultimately reducing fuel consumption by 3 million barrels and CO₂ emissions by 1.4 million tons per annum.
President Joko Widodo recently inaugurated the launch of the IONIQ 5, an electric car produced by PT Hyundai Motor Manufacturing Indonesia. The Hyundai IONIQ 5 is the first electric car to be made in Indonesia and represents an important milestone in the development of electric cars in the country, as well as supporting the development of Indonesia’s electric vehicle ecosystem, which is becoming increasingly sophisticated and globally competitive.
The government will also continue to encourage improvements in the use of local components in electric vehicles by providing incentives and reducing various regulatory barriers. It is hoped that these measures will expand the upstream electric vehicle industry while creating new jobs and generating import substitutions. Four regulations currently support the development of electric vehicles in Indonesia, namely: 1) Regulation of the Government No. 74 of 2021 on the Amendment to Regulation of the Government No. 73 of 2019 on Taxable Goods Classified as Luxury Goods in the Form of Motor Vehicles Subject to Luxury-Goods Sales Tax; 2) Regulation of the President No. 55 of 2019 on the Acceleration of the Battery-Powered Electric Motor Vehicles for Road Transportation Program; 3) Regulation of the Minister of Industry No. 36 of 2021 on Low-Carbon-Emission Four-Wheeled Vehicles; and 4) Regulation of the Minister of Industry No. 7 of 2022 on the Degradability of Completely Knocked Down and Incompletely Knocked Down Battery-Powered Electric Vehicles. _(KEMENPERIN)

......

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Semua Fitur Paket Standard
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Peraturan Konsolidasi
Premium Stories
Monthly Law Review (MLR)
Indonesian Law Digest (ILD)

STANDARD

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Daily Updates
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