In a bid to become the region’s focal point for electric vehicle (EV) production, Indonesia is reportedly set to announce a broad-ranging EV policy that will offer tax cuts to EV battery producers and foreign automakers, Reuters reports.
Last week, deputy minister for industry Harjanto said that Indonesia is encouraging companies and investors in Japan and Korea to get into the electric vehicle business in Indonesia at all levels. “The lower the electric vehicle’s carbon emission, the lower the tax will be. Our target is for 20% of all cars produced in Indonesia to be electric vehicles by 2025,” Harjanto said, adding that there has been discussions with Japanese and Korean automakers.
He declined to name the companies that had been engaged in talks, but Hyundai looks to be one of those. In December last year, it was reported that the Korean automaker is planning to invest US$880 million (RM3.6 billion) to produce EVs in Indonesia. In late 2017, Mitsubishi Motors had announced it was set to work with the Indonesian government to research EV infrastructure in the country. Although EVs were not mentioned, Volkswagen and Renault are also planning local assembly in the republic.
The country – which is the second largest car production hub in ASEAN after Thailand – is also aiming to work out preferential tariff agreements with other countries that have a high EV demand, Harjanto said. Alongside this is a concerted effort to also be become a lithium battery manufacturing hub in the region, in direct competition with Malaysia – which also announced such plans recently – to see which will be first to the tape.
Harjanto said construction on an ambitious US$4 billion (RM16.3 billion) lithium battery plant on the island of Sulawesi will be finished in 16 months. The Morowali site currently has 20 nickel ore processing facilities that feed 1.5 million tonnes of nickel pig iron a year into a three-million tonne-per-year stainless steel mill.
The report adds that Indonesia has plentiful reserves of nickel laterite ore, a vital ingredient in the manufacture of lithium-ion batteries, and government authorities are looking for the country to tap into those reserves to become a major regional player in lithium battery production.
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Our minister shiok sendiri proclaim initiatives that got no one come….
Tbh, indonesia copied MAI initiatives and ideas,
And yet we never walk the talk.
The real game changing policy. Habisla Proton!
Because ours is shit written policy. Thats why no one will come to invest on our land.
In the 90s, we were the Detroit of Asia. Everybody wanted to CKD in Malaysia. But because of corruption, all lari to Thailand and Indonesia.
The past 20 years we have lost hundreds of billions of USD (RM trillions) in investments plus we lost few hundred thousand jobs meant for Malaysians but went to Thailand.
Now, Indonesia is going to get all the Investments. They are so clever. They know EV is the way to go. EV is the future. But in Malaysia……MAI is still sleeping!
60 years of corruption and dedak hasn’t benefited the country at all. Even indonesia now is catching up
no, dedak culture began in 1981 when certain someone began with dishing out contracts to branch leaders to gain grassroots support….
EV definitely is the future, everybody invested so much on EV, all carmakers is going to make sure EV works.
And Malaysia… Hopefully the government will not take up the so call LPG plan, it’s ridiculous. Pray hard!
Bolehland can only watch and cry!
Slow and reluctant to move forward ….
I have so much worry to our economy and the future of Malaysia in the region after reading this news. Just worry.
While Malaysia go for LPG.. HAHAHAHAHA! Thanks Tun M… Moving backword!
Where are our Ev policies to encourage cleaner carbon footprint. I’m waiting to buy electric car with 300km range
We had been yelling at previous govt for so long about this, the current govt must do better! Don’t lose to the indons lah!
Some has said this (https://s2.paultan.org/image/2019/01/Malaysia-lithium-ion-battery-production.jpg) is a car EV battery even laughed at others who had dismissed such fantasies, but to me this (https://s3.paultan.org/image/2018/03/lithium-ion-battery-850×556.jpg) looks more like the real deal instead of those MAI branded cylindrical cells.
Meanwhile back in Boleh-Land, our politicians still shiok sendiri with our Euro 2 fuel standard.
how sad that we have our neighbours moving ahead in the automotive world while we are succumbed to fulfilling some child’s fantasy!!!
What happen to PH ……why still maintain BN system maintain failed Policy to attrack foreign investment here
Becoz old BN failed policy wasnt by BN but by Bapak projek Nasional? So now by bringing him back meaning all those failed policy has returned? Tenkiu PH voters!
While in Malaysia, still unready even for Euro 4 fuel. Delaying approval of car price. Don’t know what latest news about NNCP.
Dont follow Indon. Hydrogen fuel cell is the answer to the future of automobiles not batteries. In hot climate like ours, battery lifespan is significantly reduced. Malaysia should work with the Japanese to go that direction. How long do you need to wait to recharge battery? Refuelling hydrogen can reuse existing petrol kiosk infrastructure and refuel time is no difference than current fossil fuel. Dont get stuck in the #Metoo mentality. Other ppl use batteries doesnt mean we have to follow. #Dare to be innovative.
Lynas should moved to Indonesia so no EV will in The Wekando Land