Electric vehicles have significant growth potential in Indonesia. Electric car sales continue to rise, with GAIKINDO data showing an increase from 121 units in 2020 to 395 units by May 2021, excluding hybrid and plug-in hybrid sales, which have already exceeded 1,000 units. PLN also projects a significant growth in electric vehicles, from 689 units in 2021 to 65,000 units by 2030. The government supports this growth through regulations such as Presidential Regulation (Perpres) No. 55/2019 and fiscal incentives to accelerate the adoption of this technology.
Battery prices, which account for 35% of electric car production costs, have seen a significant decline. BloombergNEF reported that lithium-ion battery prices have dropped by 89% over the past decade and are projected to reach USD 73/kWh by 2030. This reduction is driven by production efficiency, economies of scale, and technological innovation. Although electric cars are currently relatively expensive, decreasing battery costs and government subsidies are expected to enhance their market competitiveness.
Indonesia holds a strategic advantage in the electric vehicle industry due to its abundant nickel reserves. Nickel, a key component of electric vehicle batteries, has an estimated laterite nickel ore potential of 6.5 billion tons. With this resource, the government aims to accelerate the development of the battery industry as the foundation for the national electric vehicle sector. Cross-sector collaboration is expected to strengthen Indonesia's position as a major player in the ASEAN electric vehicle industry.
Source: katadata.co.id