Government Claims Ready to Develop Electric Vehicle Ecosystem
- Dok. VIVA.
VIVA – The Indonesian President, Joko Widodo (Jokowi) said that the government is starting a big strategy for the country's economy by designing an electric vehicle ecosystem. According to the President, Indonesia has almost everything needed to create such an ecosystem and make other countries dependent on Indonesia.
"How to build a big ecosystem so that other countries depend on us because we have nickel, have copper, have bauxite, have tin, and our potential is huge," said the President when delivering a keynote speech at the Kompas100 CEO Forum 2022, at the State Palace, Jakarta, Friday, December 2, 2022.
President Jokowi expressed an example of the success of Taiwan which focuses on developing chips and South Korea which develops the electronic components industry, so it makes dependent on other countries.
"I continue to see, I see that what makes them soar is one of them, making digital components so the big companies in America all depend on him, need him," President Joko Widodo remarked.
Presiden Joko Widodo.
- istimewa.
The President said that Indonesia has great potential to build an electric vehicle ecosystem, especially electric batteries or EV batteries because Indonesia's nickel reserves are number one in the world, TIN in number two, bauxite number six, and copper number seven in the world.
Indonesia has great potential to build an electric vehicle ecosystem, especially in making electric batteries. The Head of State detailed that Indonesia's nickel reserves are number one in the world, tin is number two in the world, bauxite is number six in the world, and copper is number seven in the world.
"To build the EV battery ecosystem, we only lack lithium. I yesterday told the [Australian] Prime Minister, Albanese, 'Australia has lithium, we can buy it from Australia.' Open, 'please.' But it turns out that we already have a mine there. This is strategic, it is right to intervene like that so that the big ecosystem that we want to build is finished," President Joko Widodo explained.
Not only that, Jokowi said that the current challenge is to integrate these materials because they are scattered in several different places in Indonesia, for example, copper in Papua and Sumbawa, nickel in Sulawesi, and bauxite in West Kalimantan and Riau Islands.
Furthermore, the President believes that when the large ecosystem of electric vehicles is finished, the investment will come to Indonesia. The President said that Indonesia is open to this, as long as investors also cooperate with Indonesian private companies and state-owned enterprises (SOEs), so there is a transfer of technology.
In addition, the presence of a large ecosystem of electric vehicles will also boost state revenues, through tax revenues, royalties, dividends, export duties, and non-tax state revenues (PNBP).
If state revenue increases, the President continued, it means that the budget for the Village Fund will also increase. Thus, the village community will also enjoy the results of the electric vehicle ecosystem that is being built by the government.
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