JAKARTA: Indonesia has a strategic role in building the global electric vehicle (EV) supply chain while participating in the COP28 in Dubai, the United Arab Emirates (UAE), the Coordinating Ministry for Maritime Affairs and Investment stated.

The ministry’s Deputy for Infrastructure and Transportation Rachmat Kaimuddin stated here on Saturday that Indonesia is in a strategic position to build a resilient global EV supply chain in line with the global trend of decarbonisation in the transportation industry to meet net-zero commitments, reported ANTARA News Agency.

“With its abundant nickel resources, Indonesia has the power to enhance the global supply of electric vehicles and shape a more environmentally-friendly future,“ he remarked.

He stressed that Indonesia must capitalise on the great opportunity to shift from a combustion engine automotive industry to the EV industry.

Along with the increasing global demand for vehicles in recent years, Indonesia has encouraged the adoption of EVs in the domestic market and attracted more investment to increase the domestic EV production capacity.

Indonesia targets two million units of electric cars and 13 million electric bicycles on the streets by 2030.

To achieve the target, the government has offered fiscal and non-fiscal incentives for both consumers and producers. One of the incentives is the discount of Rp7 million (around US$450) for all Indonesians buying an electric bike that is assembled with at least 40 per cent of local-made components.

Kaimuddin also hinted at new incentives to attract more global EV manufacturers to open factories in Indonesia.

The government is also targetting to make Indonesia a green vehicle production hub in Southeast Asia as well as supplying the domestic market with more choices of electric vehicles. - Bernama, Antara

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