VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Ministry of Industry continues to encourage the acceleration of battery-based electric motor vehicles and new renewable energy development. This step is in line with the government's vision of targeting Indonesia to become a major player in the global automotive industry.

 Minister of Industry, Agus Gumiwang Kartasasmita said in Jakarta, Thursday (24/6) that the automotive industry is one of the priority sectors based on the Making Indonesia 4.0 roadmap. The main target is that Indonesia will become an export hub for motor vehicles, both for fuel-based and electric vehicles.

Director General of Metal, Machinery, Transportation Equipment and Electronics at the Ministry of Industry, Taufiek Bawazier said that Indonesia is also targeting to develop the main component industry for electric vehicles in the form of batteries, electric motors and inverters. So far, the automotive industry has been able to make a significant contribution to the national economy.

Indonesia's potential is currently supported by 21 automotive manufacturers. The total production capacity reaches 2.35 million units per year, by absorbing 38 thousand direct workers and more than 1.5 million people working along the value chain of the automotive industry.

According to Taufiek Bawazier, the demand for electric vehicles in the world is expected to continue to increase and will reach around 55 million units by 2040. Eenvironmentally, this growth encourages an increase in the need for lithium ion batteries. The increasing use of batteries also encourages an increase in the raw materials so that Indonesia with the abundant source of this battery raw material will play a very important role.

Currently, there are nine companies in Indonesia that support the battery industry. Five companies provide raw materials, while the other four are battery manufacturers. The development of batteries will also be directed to support the government's renewable energy program; one of which is through solar energy. Batteries that are included in the solar energy ecosystem will encourage the adoption of renewable energy, as well as spur the growth of the solar cell industry that already exists in the country.