Indonesia wants to be Southeast Asia’s largest electric car hub

• 30 October 2024
• Construction Focus
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Indonesia has shown ambition to become Southeast Asia’s largest electric vehicle (EV) and EV (battery) hub. This is according to the publication of vietnamplus on October 28, 2024.

Last July, Indonesia inaugurated the first EV battery plant in the region, a joint venture between Hyundai Motor and LG Energy Solution from the Republic of Korea (ROK), with a total investment of more than 1.1 million. Billion dollars is located in West Java.

Fransiscus Soerjopranoto, chief executive of Hyundai Motors Indonesia, said the new plant would make Indonesia a key player in Southeast Asia’s electric vehicle (EV) supply chain. While the Indonesian government aims to become one of the world’s top three manufacturers of batteries for electric vehicles, the level of investment in the sector remains small.

Indonesia has the largest nickel reserves in the world, along with iron, copper and bauxite, which are important components for rock production. However, the country still relies on refined nickel imported from South Korea and China due to a lack of related industries.

To boost the domestic EV market, the Indonesian government has introduced some incentives, including tax exemptions, to boost sales amid competition with imported electric vehicles.

However, according to Putra Adhiguna, executive director of the research institute, shifting the energy supply to the global battery supply could hinder Indonesia’s ability to attract more investment.

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