At the 2023 UN Climate Change Conference of Parties 28, the company, Pertamina, said that the adoption of EVs represents a significant opportunity with Pertamina NRE involvement in Indonesia’s electric vehicle (EV) ecosystem development, and thereby reinforcing Indonesia’s efforts towards energy transition.
President Director of Pertamina New Renewable Energy (NRE), Dannif Danusaputro, conveyed Pertamina NRE’s commitment to developing the EV ecosystem.
Dannif Danusaputro noted during a discussion on “E-Mobility: Balancing Sustainability and Growth in Critical Supply Chains” at the Indonesian Pavilion in Dubai, UAE, that “We will play a leading role in the infrastructure, charging stations, and the entire supply chain process for electric vehicles,”
Dannif remarked that Pertamina NRE will develop two-wheeled EVs. The company has already partnered with several ride-hailing companies in Indonesia. This partnership involves fleet operator development, drivers, and charging infrastructure. The company will simultaneously focus on developing battery packs for two-wheeled vehicles.
Pertamina NRE partnered with PT VKTR Mobility Technology Tbk to initiate sustainable mobility solutions in November 2023. Both companies introduced the Electric Mobility as a Service (e-MaaS) model to support and adopt EVs for urban public transportation services.
The e-MaaS model offers flexible financing for operating and maintaining EV buses that aim to reduce reliance on government funding and thereby saving costs for deploying environmentally friendly vehicles in major cities.
Dannif emphasized on the e-MaaS model that it also encompasses crucial infrastructure, such as charging stations and renewable energy sources.
Dannif’s presentation stressed the importance of funding and highlighted the need for funding to advance EV technology throughout the supply chain.
Dannif stated, “This is crucial in the development of the electric vehicle ecosystem. Therefore, a robust and independent electric vehicle supply chain will materialize more quickly,”
Dannif underscored another critical aspect of the diverse natural resources distributed across different regions, which is pivotal connectivity in providing clean energy. Infrastructure and connectivity will facilitate supply chain distribution, thereby accelerating the realization of the EV ecosystem.
President Joko Widodo’s directive to expedite public transportation electrification aligns with Pertamina NRE’s support for the EV ecosystem, as stipulated in Presidential Regulation No. 55 of 2019 and Presidential Instruction No. 7 of 2022. Pertamina NRE’s efforts aim to accelerate an environmentally friendly transportation supply chain ecosystem.
Shinta Kamdani, Coordinator Vice Chairman for Maritime, Investment, and Foreign Affairs at the Chamber of Commerce and Industry, stated that Indonesia holds significant potential in EV development.
Shinta stated, “Although still in its early stages, Indonesia has immense potential, from utilizing raw materials to battery recycling. The private sector can also participate and seize opportunities in developing the electric vehicle supply chain ecosystem,”
The government has implemented various measures to attract consumers in encouraging the adoption of EVs, including incentives of Rp7 million for new motorcycles or conversions. There is a 10 percent Value-Added Tax deduction for Domestic Component Levels reaching 40 percent in the manufacturing side.
Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Investment, Rachmat Kaimuddin, highlighted Indonesia’s active role as a primary EV supplier, not only nationally but also regionally.
Rachmat stated, “Indonesia could become a major player in supplying electric vehicles internationally. This effort can commence with exports to the Southeast Asian region,”
All panelists in the session agreed that utilizing raw materials, such as nickel, has a significant opportunity for Indonesia. The collaborative steps are taken to enhance capacity and technology to leverage advantages for competitiveness. These efforts will progress smoothly with policy support from the government.
President Director of PT Bank HSBC Indonesia Francois De Maricourt and Head of Metals and Mining at BloombergNEF Kwasi Ampofo were also present at the session.
Pertamina, as a leading company in energy transition, is committed to supporting the Net Zero Emission 2060 target by unceasingly promoting programs. The programs directly impact the achievement of Sustainable Development Goals (SDGs). All these efforts align with the Environmental, Social & Governance (ESG) implementation across Pertamina’s business lines and operations.