So we are ready to collaborate with other parties from all countries to develop EV batteries and optimize our infrastructures.
Jakarta (ANTARA) - The Business 20-Task Force Energy, Sustainability, and Climate (B20-TF ESC) has made several policy recommendations for accelerating the development of the electric vehicle (EV) ecosystem in Indonesia.

"We have proposed some policy recommendations and policy action, especially on how we can accelerate the EV penetration in each country," CEO of PT Pertamina (Persero), Nicke Widyawati, said at an event at the Indonesia Pavillion during the World Economic Forum in Davos, Switzerland, on Wednesday.

The event was themed “Indonesia Economic Development Through Downstream Industries and Inclusive Partnership.”

Widyawati said the policy recommendations include accelerating sustainable energy use, ensuring a just and affordable transition, and enhancing energy security.

To accelerate the use of sustainable energy, Pertamina is focusing on energy efficiency, with electrification becoming a critical success factor, she informed.

"There is a target for energy efficiency for the demand side, how to manage the demand side energy efficiency, and we believe that electrification becomes a key success factor for that," she said.

In addition, she highlighted the need for financing, especially from developed countries, since the transition to renewable energy requires enormous capital investment.

"So we also need investment from developed countries," she said.

Widyawati, who also served as the co-chair of the B20-TF ESC during the 2022 G20, added that the second policy recommendation highlights the need for ensuring a just and affordable transition.

The recommendation points to the need to prepare for a just transition from sectors impacted by the energy transition toward relevant sectors, she informed.

She also pointed to the need for ensuring sustainable practices in mineral access for building new clean and low-carbon energy infrastructures, including electric vehicles.

The third recommendation concerns the need for enhancing energy security.

"We need the framework and regulation such as incentives to promote and accelerate the EV ecosystem," Widyawati explained.

PT Pertamina (Persero) is playing a significant role in developing the EV battery ecosystem.

“We believe with the nickel reserves in Indonesia, we can produce the battery and can also increase the penetration of EV,” Widyawati said.

Pertamina has infrastructures that can be optimized for EV penetration, she added.

The company also has segmentation data on buying capability, mobility, and characteristics, she said.

PT Pertamina (Persero) has more than 7,400 gas stations, 6,100 Pertashops, and 63 thousand LPG outlets.

“So we are ready to collaborate with other parties from all countries to develop EV batteries and optimize our infrastructures,” Widyawati said.

The B20-TF ESC is a business community that supports the G20 with impactful and actionable policy recommendations from the business point of view.

It has more than 150 members, with eight co-chairs selected from several countries with different energy archetypes.

The Minister of Investment, Bahlil Lahadalia, speaks at the Indonesia Pavilion during the World Economic Forum, in Davos on Wednesday (18/01/2023). (ANTARA/HO Kementerian Investasi/BKPM)

Meanwhile, Minister of Investment, Bahlil Lahadalia, said that the development of the EV ecosystem in Indonesia was started by involving foreign companies and state-owned enterprises, including PT Pertamina (Persero).

At least four companies have plans to invest in Indonesia to support EV development, including LG, CATL, Foxconn, and Britishvolt.

"The LG company invests US$9.8 billion, while the CATL company is around US$6 billion that they consolidate with Indonesian state-owned enterprises such as PT Pertamina (Persero), MIND ID, and PT Antam," Lahadalia informed.

Additionally, Foxconn is planning to invest US$8 billion and Britishvolt US$2 billion.

According to Lahadalia, the government is welcoming serious investors to Indonesia by providing convenient licensing facilities and tax incentives.

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Reporter: Katriana
Editor: Azis Kurmala
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