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Panel discussion and socialization on 'Decarbonization of the Transportation Sector through the Adoption of Battery-Based Electric Motorized Vehicles (KBLBB) for a Better Indonesia' in the West Java Region in Bandung - 

Deputy for Infrastructure and Transportation Coordination, Rachmat Kaimuddin, said that the transition to using electric vehicles in Indonesia requires the cooperation of all parties. He conveyed this when opening a panel discussion and socialization on 'Decarbonization of the Transportation Sector through the Adoption of Battery-Based Electric Motorized Vehicles (KBLBB) for a Better Indonesia' in the West Java Region in Bandung (Tuesday, 7-11-2023).

"This transition is a long journey, but that doesn't mean we don't do something. We have to start planning, making a roadmap. It's our future at stake. Therefore, the government provides strong encouragement. "The government cannot do it alone, it needs support from local government, industry and users," said Deputy Rachmat.

According to him, the development of the Battery-Based Electric Motor Vehicle (KBLBB) industry is part of energy transition efforts, namely by transforming industry and protecting the environment. Deputy Rachmat said that the Indonesian automotive market is the largest in ASEAN.

“This industry is an important sector for Indonesia. The economic impact is also very broad because we are not only consumers but also producers. "However, we also have to look at the world trend which is starting to switch to electric vehicles," he said.

Regarding this matter, Bentang Arief Budiman, Partnership Manager of the National Center for Sustainable Transportation Technology (NCCT) said that multi-party collaboration is needed to encourage the acceleration of electric vehicles.

“Academics and industry must collaborate, starting from technology development, then knowledge development, and also business. "Collaboration between each sector is to jointly transform what has been developed scientifically so that it becomes a product that can benefit society," he said.

Deputy Rachmat explained that since the ratification of the Paris Agreement in 2016, the development of global electric vehicles has increased every year, such as in 2022 which will increase to 14%. According to him, in the region, Indonesia's biggest rival is Thailand, whose electric vehicle market will reach 8% by 2023.

"Indonesia needs to anticipate, don't let it become a big industry in Thailand, but not Indonesia, and when the market focuses on electric vehicles, don't let all our electric vehicles be made in Thailand," said Deputy Rachmat.

According to him, the government has created incentives to encourage the development of the electric vehicle industry, one of which is through an assistance program with an incentive of seven million rupiah/person for each motor vehicle unit. Meanwhile, according to him, for the adoption of electric cars and buses there is a reduction in VAT from 11% to 1%.

"The government's target for 2030 is to have two million cars and 13 million electric motorbikes so that 10% of the population is our target. With that 10%, it is hoped that it will start to enter the mainstream realm. We will indirectly reduce fuel imports and fuel subsidies. "Currently there are 15 brands of electric motorbikes with a TKDN of 40% produced in Indonesia," he explained.

According to a release received by Voice of Indonesia on Tuesday (07/11/23), regarding this matter, Saadiyah Dwidaningsih, Head of the West Java ESDM Service representing Acting. The Governor of West Java said he had supported the electric vehicle acceleration program by providing conversion kits, namely to 17 vocational schools in West Java.

"This is to strengthen, to increase the number of conversion workshops, as well as increasing the capacity of students and experts who will develop these electric vehicles in the future," he said.

Kadis Saadiyah added that West Java province received an award from the National Energy Council as a regional government that succeeded in campaigning for clean energy and a region that succeeded in encouraging the energy transition.

In his presentation, Deputy Rachmat explained that only by developing the domestic EV industry can Indonesia realize positive externalities and prevent the risk of reduced GDP and employment opportunities due to the automotive industry transition.

"We hope that starting next year there will be new investors to start building EV factories in Indonesia, with a target of starting production in 2026. "To attract that, we must be able to prove that the Indonesian market is attractive," hoped Deputy Rachmat.

He emphasized that accelerating EV adoption is important, especially to accelerate Indonesia's decarbonization agenda, improve air quality and make the downstreaming of Indonesia's critical minerals a success.

"But we can't wait, if we wait we will just be spectators. Because other countries have been very active in inviting them and they have started building factories. "We have to remember that as an ASEAN country, import duties among ASEAN countries are 0%, so if for example it is built in another ASEAN country, it enters Indonesia at 0%, we will only be consumers," he concluded.

For your information, this activity also invited representatives from the Bandung Technology Institute, Fiscal Policy Agency of the Ministry of Finance, Directorate General of ILMATE, Ministry of Industry, Directorate General of Electricity, Ministry of Energy and Mineral Resources, Directorate General of Land Transportation, Ministry of Transportation, Directorate General of Regional Financial Development, Ministry of Home Affairs, Directorate of Energy Conservation. Ministry of Energy and Mineral Resources, PT. Indonesian Surveyor, PT. Bank Mandiri, and AISMOLI//VOI