Indonesia Advantageously Positioned For Global Electric Vehicle Supply Chain

Speaking at the COP28 summit in Dubai Indonesia’s Coordinating Ministry for Maritime Affairs and Investment identified Indonesia as a strategic Asian hub ideally positioned to build the global electric vehicle (EV) supply chain

The ministry’s Deputy for Infrastructure and Transportation Rachmat Kaimuddin stated that Indonesia is in a strategic position to build a resilient global EV supply chain in line with the global trend of decarbonisation in the transportation industry to meet net-zero commitments, according to a report from Indonesian news agency Antara.

“With its abundant nickel resources, Indonesia has the power to enhance the global supply of electric vehicles and shape a more environmentally friendly future,” Kaimuddin said.

He added that the timing was right for Indonesia to robustly exploit the current opportunity to shift from a combustion engine automotive industry to embrace the EV industry.

Along with the increasing global demand for vehicles in recent years, Indonesia has encouraged the adoption of EVs in the domestic market and attracted more investment to increase the domestic EV production capacity.

Indonesia is targeting two million units of electric cars and 13 million electric bicycles on the streets by 2030. To achieve the target, the government has offered financial and other incentives for both producers and consumers.