With Pertamina NRE involvement in Indonesia’s electric vehicle (EV) ecosystem development, the adoption of EVs represents a significant opportunity for the company, thereby reinforcing Indonesia’s efforts towards energy transition, the company said at the 2023 United Nations Climate Change Conference (COP28) on Friday (Dec 1).
Dannif Danusaputro, President Director of Pertamina New Renewable Energy (NRE), a subsidiary of the state-owned oil and gas company, conveyed their commitment to developing the EV ecosystem. “We will play a leading role in the infrastructure, charging stations, and the entire supply chain process for electric vehicles,” he noted during a session themed “E-Mobility: Balancing Sustainability and Growth in Critical Supply Chains” at the Indonesian Pavilion.
Dannif remarked that Pertamina NRE will develop two-wheeled EVs. The company has already collaborated with several ride-hailing companies in Indonesia. This collaboration involves fleet operator development, drivers, and charging infrastructure. The company will also focus on developing battery packs for two-wheeled vehicles.
In November 2023, Pertamina NRE partnered with PT VKTR Mobility Technology Tbk to initiate sustainable mobility solutions. Both companies introduced the Electric Mobility as a Service (e-MaaS) model to support the adoption of EVs for urban public transportation services.
The e-MaaS model offers flexible financing for operating and maintaining EV buses, intending to reduce reliance on government funding, thereby saving costs for deploying environmentally friendly vehicles in major cities. Dannif emphasized that the e-MaaS model also encompasses crucial infrastructure, such as charging stations and renewable energy sources.
During his presentation, Dannif stressed the importance of funding. He highlighted the need for funding to advance EV technology throughout the supply chain. “This is crucial in the development of the electric vehicle ecosystem. With it, a robust and independent electric vehicle supply chain will materialize more quickly,” Dannif stated.
Dannif also underscored another critical aspect: the diverse natural resources distributed across different regions, with connectivity pivotal in providing clean energy. Infrastructure and connectivity will facilitate supply chain distribution, accelerating the realization of the EV ecosystem.
Pertamina NRE’s support for the EV ecosystem aligns with President Joko Widodo’s directive to expedite public transportation electrification, as stipulated in Presidential Regulation 55/2019 and Presidential Instruction 7/2022. Pertamina NRE’s efforts aim to accelerate an environmentally friendly transportation supply chain ecosystem.
Shinta Kamdani, deputy chairperson for maritime affairs, investment and foreign affairs at the Indonesian Chamber of Commerce and Industry, stated that Indonesia holds significant potential in EV development. “Although still in its early stages, Indonesia has immense potential, from utilizing raw materials to battery recycling. The private sector can participate and seize opportunities in developing the electric vehicle supply chain ecosystem,” Shinta stated.
Encouraging the adoption of EVs, the government has implemented various measures to attract consumers, including incentives of Rp7 million for new motorcycles or conversions. On the manufacturing side, there is a 10 percent value-added tax deduction for domestic component levels reaching 40 percent.
Rachmat Kaimuddin, deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Investment, highlighted Indonesia’s active role as a primary EV supplier, not only nationally but also regionally. “Indonesia could become a major player in supplying electric vehicles internationally. This effort can commence with exports to the Southeast Asian region,” Rachmat remarked.
All panelists in the session agreed that utilizing raw materials, such as nickel, presents a significant opportunity for Indonesia. Moreover, collaborative steps are needed to enhance capacity and technology as well as leverage advantages for competitiveness. These efforts will progress smoothly with policy support from the government.
Francois De Maricourt, President Director of PT Bank HSBC Indonesia, and Kwasi Ampofo, Head of Metals and Mining at BloombergNEF, were also present at the session.
Pertamina, as a leading company in energy transition, is committed to supporting Net Zero Emission 2060 targets by unceasingly promoting programs that directly impact the achievement of Sustainable Development Goals (SDGs). These efforts align with the Environmental, Social & Governance (ESG) implementation across Pertamina’s business lines and operations.
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