Indonesia's Ambitious Drive Towards Electric Vehicle

Indonesia is positioning itself as a pivotal player in the global electric vehicle (EV) market, with a goal to export 200,000 electric cars by 2025, constituting nearly 20 percent of the country's annual car exports. In 2019, the nation saw the sale of approximately 15,500 electric two-wheeler motorcycles and 24 electric passenger vehicles, marking a notable step towards sustainable transportation.

The commitment to combat climate change is at the forefront of Indonesia's agenda. As a signatory of the Paris Agreement, the country has also ratified its National Determined Contributions (NDC) in 2016, outlining a target to reduce greenhouse gas (GHG) emissions by 29 percent by 2030, or 41 percent with international assistance. Embracing global efforts to adopt EVs, Indonesia is introducing Electric Vehicles (EVs) under the Low Carbon Emission Vehicles (LCEV) scheme, evolving from the existing Low-Cost Green Car (LCGC) initiative.

By 2030, Indonesia envisions achieving self-sufficient local production of raw materials and key EV components, optimizing productivity along the value chain, becoming a leading automotive export hub, and asserting its position as a regional leader in EV production. This strategic roadmap reflects Indonesia's commitment to green manufacturing, aligning with international goals while fostering economic growth through sustainable practices.

 

Source: KPMG Indonesia


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