EV investments in ASEAN

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【Summary】Indonesia's EV-friendly policies have attracted global investors and could boost investments in Southeast Asia's automotive industry. The country's rich resources of materials like nickel make it an attractive hub for EV manufacturing. Indonesia has banned exports of certain metals and minerals to draw in investors and manufacturers.

FutureCar Staff Sep 25, 2023 6:20 AM PT

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.

Indonesia's policies supporting electric vehicles 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 with an electric vehicle unit called VKTR, stated that Indonesia could serve as the "gateway" to the rest of the Association of Southeast Asian Nations. 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 its resource wealth, Indonesia aims to become a prominent global supply chain hub for electric vehicles. The country has actively sought the interest of companies like Tesla.

Koketso Tsoai, an automobiles analyst at BMI Fitch Solutions, explained that Indonesia's abundant natural resources for EVs make it an attractive destination for investments. The government's ban on nickel ore exports and its emphasis on utilizing natural resources for economic growth further enhance this appeal.

In order to attract investors and manufacturers who require these materials, Indonesia has implemented a ban on the export of certain metals and minerals.