Indonesia is stepping up efforts to revive its electric vehicle industry. An initiative which, according to Anindya Novyan, could bring benefits to the entire Association of Southeast Asian Nations (ASEAN).
Indonesia is stepping up efforts to revive its electric vehicle industry. A move that could ultimately benefit the entire Association of Southeast Asian Nations (ASEAN), according to Anindya Novyan Bakrie, CEO of Bakrie & Brothers, an Indonesian conglomerate with an electric vehicle unit called VKTR.
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Major Asian automakers such as Toyota and Hyundai have invested billions of dollars in expanding their electric vehicle manufacturing plants in Indonesia. The country dreams of itself as a global battery hub and has even made strong calls for Tesla to set up the company there.
It has an important argument thanks to the richness of its soils in copper, nickel, cobalt and bauxite, essential materials for the manufacture of batteries for electric vehicles. For example, according to a report by ASEAN Briefing, Indonesia is the largest exporter of nickel, accounting for 22% of global reserves. The country has not hesitated to ban the export of some metals and minerals, with the aim of attracting investors and producers to its territory who need these materials for the design of their batteries.
These efforts could not only revive Indonesia’s industry but also open Southeast Asia’s doors to investors. By providing access to key battery materials, the country “ it could attract much more investment and help ASEAN as a region adopt electric vehicles faster and at lower costs “, according to a report by Maybank, Malaysia’s leading banking and finance group.
All of Southeast Asia can benefit from it
In addition to wanting to develop the sector on an industrial scale, the region is rapidly adopting electric vehicles. Their sales increased tenfold year-over-year in the first quarter of 2023, a recent report from Counterpoint Research revealed.
At the same time, electric vehicle battery production accounted for a significant share of foreign direct investment in the region between 2019 and 2021, particularly in Indonesia, Malaysia and Thailand. In this context, these different countries can join forces to bring different resources to benefit the electric vehicle ecosystem. While Thailand has great experience in automotive manufacturing, Malaysia focuses more on high technology.
Indonesia could then lead the joint effort in the electric vehicle sector, to encourage investors from around the world to establish themselves in the region.
