Indonesia's Potential as the EV Investment Hub 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 copper, nickel, cobalt, and bauxite make it an attractive hub for electric vehicle manufacturing. Indonesia has banned exports of certain metals and minerals to draw investors and manufacturers to its shores.

FutureCar Staff Sep 24, 2023 11:15 PM PT

Indonesia's Potential as the EV Investment Hub in ASEAN

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

Indonesia's favorable policies towards 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, the 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 its resource wealth, Indonesia aims to position itself as a key global supply chain hub for electric vehicles. The country has actively courted companies like Tesla in this pursuit.

Koketso Tsoai, an automobiles analyst at BMI Fitch Solutions, highlighted Indonesia's attractive qualities for EV investments. The nation's abundant natural resources necessary for EVs, combined with a government that promotes the beneficiation of these resources to drive economic growth, make Indonesia appealing to investors.

In order to attract investors and manufacturers that require specific metals and minerals, Indonesia has implemented a ban on the export of these resources.