The Indonesian government is seeking investment from Renault and Volvo to make electric vehicles as the country targets battery-powered automobiles to account for a quarter of the production by 2030.
The government has asked Renault and Volvo to consider building factories or assembly units in Southeast Asia’s largest market for cars, as it eyes production of 750,000 electric vehicles by 2030, said Harjanto, director general of metal, machinery, transportation and electronics at the industry ministry. The country’s total vehicle production is seen more than doubling to 3 million units during the period, he said as quoted by The Jakarta Post.
President Joko "Widodo" Widodo has promised tax incentives to draw foreign investment in electric vehicles while also making it expensive to own fossil fuel-powered automobiles to save the country about 798 trillion rupiah ($56 billion) from reducing dependence and imports of crude oil. While Hyundai Motor and Volkswagen have shown interest in manufacturing electric vehicles, a consortium of Chinese and Indonesian companies is already building a battery plant, according to Industry Minister Airlangga Hartarto.
Abundant reserves of nickel ore, a key raw material in electric batteries, is an advantage Indonesia wants to tap for developing its electric vehicle industry and one company has started work on producing raw materials for electric batteries, Harjanto said. Once a battery production facility is in place, it would be easy to draw vehicle manufacturers.
(source: The Jakarta Post)