This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Kemenhub dukung pembangunan fasilitas kendaraan listrik komersial
29 February 2024
Jakarta, ID – The Transportation Ministry is supporting the construction of the first commercial electric vehicle facility in Indonesia, worked on by PT VKTR Teknologi Mobilitas Tbk (VKTR).
Transportation Minister Budi Karya Sumadi mentioned that the facility would accelerate the adoption of electric vehicles in Indonesia. According to him, establishing an electric vehicle ecosystem in Indonesia needed synergy and collaboration, beginning with commercial vehicles such as buses, trucks, and taxis.
“Our efforts extend beyond the responsibilities of a private company, it is a commitment that the government is also obligated to support,” the Transportation Minister said when he attended the groundbreaking ceremony for the facility constructed by the Bakrie subsidiary in Magelang, Central Java on Tuesday (27/2/2024), as quoted from his press release.
During the occasion, Budi Karya stated that the Indonesian government was committed to raising Indonesia's unconditional emission reduction target from 29% to 31.89%. Simultaneously, the conditional emission reduction target is slated to also increase from 41% to 43.20%. These targets are outlined in the Enhanced Nationally Determined Contribution (ENDC) document.
“To achieve the emission reduction targets, the Transportation Ministry is committed to expediting the development of the battery electric vehicle (BEV) industry to [meet] the demands of the domestic market and the global market. As of 22 January 2024, Type Test Registration Certificates have been issued for a total of 122,630 BEVs.,” he explained.
Through the public-private partnership (PPP) scheme, the Centre for Roadworthiness Testing and Motor Vehicle Certification (BPLJKSB) in Bekasi, West Java, has established the largest proving ground in Southeast Asia for motor vehicle testing and certification. This facility enables the execution of type tests that were traditionally conducted abroad, now conducted within Indonesia.
The government aims to promote electric vehicles to enhance energy efficiency and conservation in the transportation sector, leading to improved air quality, eco-friendliness, and decreased dependence on imported fuels.
Investment Minister/Investment Coordinating Board (BKPM) Head Bahlil Lahadalia said that the construction of the factory has an incredible local content rate at around 40%-70%.
“It is not a small percentage. It shows that the local industry can compete globally and give hope for a more sustainable and independent automotive industry in Indonesia,” he stated.
The Metal, Machinery, Transportation Equipment, and Electronics Industries Director General of the Industry Ministry, Taufik Bawazier, added that the potential of using commercial electric buses in Indonesia was quite high. In 2023, the number of electric buses increased by 140% to 6,227 units from 2,550 units.
“From our calculation, there are various benefits. Starting from the environment, efficiency, fuel, and government subsidies can be realised if all provinces and regencies in Indonesia use electric buses,” Taufik stated.
