by Fardah
Selasa, 29 Okt 2019 13:57
Jakarta, 29/10 (Antara) -
Indonesia is buoyant about emerging as a major producer of electric
vehicles (EV) owing to quite abundant raw materials to produce lithium
batteries, the main component of EV manufacturing.
Besides
this, the country believes that electric-based vehicles can lower air
pollution, especially in Jakarta, categorized as one of the polluted
cities in the world and infamous for its massive traffic jams due to
carbon emissions from motor vehicles, among other things.
To
expedite the materialization of the EV industry and attract investors,
President Joko Widodo (Jokowi) had signed Presidential Regulation No. 55
of 2019 on the acceleration of battery-operated vehicles for road
transportation in early August 2019.
Development of the
domestic electric vehicle industry will be accelerated in accordance
with the regulation effective as of August 12, 2019. Furthermore, it
encourages optimization of local content to increase competitiveness,
incentives, charging station infrastructure development, and special
electricity tariffs for battery charging, as well as environmental
preservation.
The regulation also pushes for energy
efficiency, security, and conservation in the transportation sector,
clean energy usage, air quality improvement, and the realization of
Indonesias commitment to lowering greenhouse gas emissions.
"We know that 60 percent of the key to electric cars is the batteries,
and we have the components to make them (such as) cobalt and manganese
in our country," Jokowi noted in a statement posted on setkab.go.id.
Most electric cars available in the market today were some 40 percent more expensive than fossil-fueled cars, he pointed out.
Hence, he was optimistic that Indonesia's ubiquitous resources of
materials required for making batteries would help push down prices,
thereby creating greater demand for EVs.
Jokowi believed that
Indonesia is a strategic place for EV businesses to start, and the
country is capable of designing an affordable and competitive electric
car industry.
Sharing the president's optimism, Coordinating
Minister for Maritime Affairs Luhut Binsar Pandjaitan was also confident
about Indonesia becoming part of the global supply chain in the
electric car industry in the subsequent five years.
"I am
optimistic that Indonesia would become part of the global supply chain
in the next five years. As much as 70 percent of the raw materials
required for the production of lithium batteries are produced in
Indonesia. It also has abundant reserves of rubber and tin," Pandjaitan
noted in a statement recently.
As the biggest producer in the
mining sector, he believes Indonesia should have the power to determine
the price of the commodity.
According to Pandjaitan, South
Korea's LG Chemical is contemplating on building a facility to produce
lithium batteries in Indonesia as a precautionary measure against the
country's plan to ban nickel ore exports from January 2020.
He believed that LG Chemical's intent to build the facility in Indonesia
will support the government's plan to develop electric cars.
Besides this, PT Toyota Motor Manufacturing Indonesia (TMMIN) has
expressed readiness to start battery electric vehicle (BEV) production
at its factory in Karawang, West Java.
"It is a global trend.
If we do not join it, we will not be able to export," TMMIN president
director Warih Andang Tjahjono stated in Tokyo on Oct 28, 2019.
TMMIN is committed to supporting the government's target for the share
of electric vehicle output to reach 20 percent of Indonesia's total car
production by 2025.
The Ministry of Industry had earlier targeted investment in the battery industry for electric vehicles in the country.
One of the important aspects in accelerating the production of the
electric vehicle industry is the preparation of supporting industries,
such as power control units (PCU), electric motors, and batteries, then
Minister of Industry Airlangga Hartarto stated.
Based on
data, increasing investment in Indonesia for the industrial sector that
will produce electric vehicle batteries only needs one additional stage,
such as investment in the battery cell industry.
Other
investments in mine concentrations, refinery, and electrochemical
production are already a part of the Morowali Industrial Zone (IMIP) in
Central Sulawesi.
In the meantime, the National Energy Council (DEN) has urged offices to set up charging stations for electric vehicles.
Electric vehicles can lower air pollution, fossil fuel consumption,
and oil imports, DEN Secretary General Djoko Siswanto noted in a
statement on Sept 30, 2019.
"The rationale behind using
electric vehicles is to realize a cleaner environment, curb air
pollution, curtail fossil oil consumption, and lessen imports. DEN urges
all electric car producers to begin production of the vehicles now," he
remarked.
To support the initiative to use electric
vehicles, every office should provide electric sockets or public
electric vehicle charging stations (SPKLUs) at parking lots for charging
batteries.
"Every office is advised to build electric
sockets at motorcycle parking lots. For motorbikes, charging a vehicle
battery at home or office is sufficient. Each takes around four hours to
charge and can suffice for five day trips from home to office and vice
versa," he explained.
State-owned electricity company PT PLN
had earlier affirmed its support to the development of Electric Vehicle
Charging Stations (SPKLU) following the issuance of Presidential Decree
No. 5 of 2019.
"We will facilitate all parties keen on
developing electric vehicles," PLN Acting President Director Sripeni
Inten Cahyani stated, adding that the company will offer two business
schemes: Company Owned Company Operated, or COCO, and Partner Owned
Partner Operated, or POPO.
Furthermore, PT PLN will offer a
75-percent discount for electric motorcycle owners and free charge for
electric car users to augment power capacity, so they will have
sufficient electricity to charge their vehicles at home.
The
Agency for Technology Assessment and Application (BPPT) had earlier
echoed that electric vehicles would pick up steam in Indonesia, with
more charging stations being set up nationwide.
The agency
held the Indonesia Electric Motor Show (IEMS) 2019 on Sept 4-7 in
Jakarta to promote the use of electric vehicles in the country.