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Indonesia to become Asia's electric vehicle manufacturing hub

Asia / Engineering

Indonesia intends to stimulate the development of the electromobility industry at the state level.

Indonesia to become Asia's electric vehicle manufacturing hub

Indonesian President Joko Widodo, on Thursday signed a decree on state support for the electromobility industry in the country, seeking to use the rich domestic deposits of raw materials for the production of batteries.

A key factor in the development of the electric vehicle (EV) industry is the availability of “raw materials for the production of batteries: cobalt, manganese and other metals that our country is rich in,” Widodo said in a statement released by the Cabinet Office.

The government plans to develop the Indonesian EV industry is to create a processing industry based on the supply of nickel laterite ore, which is used in lithium batteries.

Indonesia aims to become a hub for electric vehicles in Asia and beyond, with the goal of launching electric vehicles in 2022, bringing EV production to 20% of total vehicle production by 2025.

The new rules aim to stimulate the production of not only EVs, but also hydrogen fuel cell vehicles and other new green technologies in the automotive industry, according to a separate statement from the Industry Ministry.

The draft regulation also states that automakers, among other things, will receive a reduction in import tariffs for cars and materials for electric vehicles.

Industry Minister Airlang Hartarto said a number of foreign companies, including Japan's Toyota Motor and South Korea's Hyundai Motor, are willing to invest in the Indonesian electromobility industry.

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