Politics
Jokowi calls for production of 600,000 electric cars in Indonesia by 2030
Jakarta, CNBC Indonesia – Indonesian President Joko Widodo (Jokowi) has set a target for the production of battery electric vehicles or battery electric vehicles (BEVs) to reach 600,000 units by 2030. It is hoped that this figure can be achieved by manufacturers who assemble their vehicles in Indonesia.
“Indonesia aims to produce 600,000 BEVs by 2030, so Kona's power generation will be 50,000 units per year,” said Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan at the inauguration of the Hyundai-LG Indonesia battery factory in Kerawang, West Java, Wednesday (3/7/2024).
With the mass production of these vehicles, Indonesia should be able to reduce the use of other subsidies, such as energy subsidies. Apart from this, the amount of pollution will be further reduced.
“It is estimated that this production will reduce CO2 emissions by around 160,000 per year and reduce fuel imports by 45 million liters per year and fuel subsidy savings by IDR 131 billion per year, and will increase with the number of vehicles on the road,” Luhut said.
Euisun Chung, executive chairman of Hyundai Motor Group, is already familiar with Indonesia's electric vehicle production targets.
“President Joko Widodo has set a goal of producing 600,000 electric vehicles in the country by 2030. I think this goal is very reasonable. This country is the largest automobile market in Southeast Asia. The vehicles produced and sold here are the standard for the entire region of the country. Southeast Asia region with 700 million potential customers,” Chung said.
He referred to the International Energy Agency's forecast that more than half of global car sales will shift to electric cars by 2035. Indonesia has a great opportunity to achieve this.
“Today, Indonesia is more than ever at the center of this future… Hyundai Motor Group assures that the activation of the electric vehicle industry in Indonesia will bring new economic opportunities to the entire Southeast Asia,” Chung said.
“The country’s mineral resources, such as iron and nickel, are essential components of the batteries that will power millions of electric vehicles around the world,” he continued.
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