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Discussion session at COP28 Dubai, United Arab Emirates - 

Voinews, Jakarta - Indonesia is in a strategic position to build a resilient global electric vehicle (EV) supply chain, in line with the global trend of decarbonizing the transportation industry to meet net zero commitments, said the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) at a discussion session at COP28 Dubai , United Arab Emirates on Friday, (1-12-2023).

This session explores various electric vehicle opportunities for international business players and stakeholders in Indonesia, which is the largest automotive market in Southeast Asia.

Indonesia is also recognized as the country that owns the largest nickel reserves in the world. Nickel is an important component in lithium-ion electric vehicle batteries. This session also discussed some of the most pressing challenges in increasing the global supply of critical minerals, while realizing sustainable and responsible business practices throughout the supply chain.

“With abundant nickel resources, Indonesia has the power to boost global electric vehicle supply and shape a more environmentally friendly future, but at the same time Indonesia must take advantage of this great opportunity to switch the combustion engine automotive industry to electric before the combustion engine automotive industry become obsolete," said Rachmat Kaimuddin, Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Fisheries held at the Indonesian Pavilion in the context of COP28.

Deputy Rachmat added that along with the soaring global demand for vehicles in recent years, Indonesia has encouraged the adoption of electric vehicles in the domestic market, as well as attracting more investment to increase electric vehicle production capacity in Indonesia.

According a release received by Voice of Indonesia on Saturday (02/12/23), Indonesia targets to have two million electric passenger cars and 13 million electric bicycles on the road by 2030.

To achieve this target, the government has launched fiscal and non-fiscal incentives for consumers and producers. One form of incentive is a discount of IDR 7 million (USD 450) for all Indonesian people who want to buy a new electric bicycle that meets 40 percent of local component needs.

Deputy Rachmat also hinted at new incentives from the government to attract more international electric vehicle manufacturers to open factories in Indonesia.

Currently the government is working to make Indonesia a production base for environmentally friendly vehicles in Southeast Asia, as well as supplying the domestic market with a wider choice of EV vehicles.

“We need to create demand and good infrastructure. "We know that currently there are not enough choices (for consumers)," said Deputy Rachmat.

The COP28 discussion session was organized by the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) and HSBC.

This session presented top speakers including CEO of Pertamina New Renewable Energy Dannif Danusaputro, Head of Metals & Minerals BloombergNEF Dr. Kwazi Ampofo, CEO & President Director of PT Bank HSBC Indonesia Francois de Maricourt, Vice Chair Maritime, Investment & International Relations Kadin Indonesia Shinta Kamdani.

COP28 in Dubai is expected to attract more than 70,000 participants, including heads of state, government officials, international industry leaders, private sector representatives, academics, experts, youth and civil society.

As mandated by the Paris Climate Agreement, COP28 will carry out the first Global Inventory – a comprehensive evaluation of progress towards achieving climate goals.

Host country, the United Arab Emirates (UAE) is leading the process for all parties to agree on a clear roadmap to accelerate progress through a pragmatic global energy transition and a “leave no one behind” approach to inclusive climate action.”//VOI