EV investments in ASEAN: Indonesia as the potential gateway

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【Summary】Indonesia's EV-friendly policies are attracting global investors and could also boost investments in Southeast Asia's automotive industry. With abundant resources like copper, nickel, cobalt, and bauxite, Indonesia aims to become a key global supply chain hub for electric vehicles. The country has banned exports of certain metals and minerals to draw investors in need of these materials.

FutureCar Staff Sep 25, 2023 9:24 AM PT

EV investments in ASEAN: Indonesia as the potential gateway

Korean automobile manufacturer Kia showcased the electric vehicle "EV6 GT-Line" at the 30th Gaikindo Indonesia International Auto Show in Tangerang on August 10, 2023.

The EV-friendly policies implemented by Indonesia have attracted global investors to the country, and experts believe that these policies could also stimulate investments in the automotive industry across Southeast Asia.

Anindya Novyan Bakrie, CEO and president director of Bakrie & Brothers, an Indonesian conglomerate, stated that Indonesia could serve as the "gateway" to the rest of the Association of Southeast Asian Nations. Bakrie's electric vehicle unit VKTR manufactures electric buses and EV parts.

Indonesia possesses abundant reserves of copper, nickel, cobalt, and bauxite, which are crucial materials for the production of electric vehicle batteries. According to a report by the ASEAN Briefing, Indonesia is the largest exporter of nickel, accounting for 22% of the world's reserves.

With the aim of establishing itself as a key global supply chain hub for electric vehicles, Indonesia has actively sought partnerships with companies like Tesla.

Koketso Tsoai, an automobiles analyst at BMI Fitch Solutions, explained that Indonesia's wealth of natural resources required for EVs makes it an attractive destination for investments. The government's ban on the export of certain metals and minerals further encourages investors and manufacturers to set up operations in Indonesia.