SOEs synergize to accelerate EV adoption in Indonesia: Minister

SOEs synergize to accelerate EV adoption in Indonesia: Minister

State-owned Enterprises Minister Erick Thohir. (ANTARA/HO-Kementerian BUMN/pri)

Jakarta (ANTARA) - State enterprises have worked in synergy to accelerate electric vehicle adoption in Indonesia to promote eco-friendly transportation, State-owned Enterprises Minister Erick Thohir affirmed.

"Transition towards electric vehicles will surely improve national energy security. Moreover, the effort will promote cheaper, more eco-friendly transportation in the future," the minister said in a statement received here on Sunday.

With its abundant reserves of minerals needed for electric vehicles, Indonesia will contribute significantly to electric vehicle ecosystem development by pursuing collaboration through its state-owned enterprises, he elaborated.

Thohir highlighted the companies' collaboration to educate and call for people to use electric vehicles, leaving their fossil fuel-based vehicles.

"Through the Periklindo 2023 Electric Vehicle Show, we greet people in-person and convince them that we, Indonesia, are ready for the transition toward electric vehicle use. We at state-owned enterprises collaborate to form the ecosystem from the upstream to the downstream," the minister remarked.

Electric vehicle battery produced by the Indonesian Battery Corporation (IBC) were showcased in the exhibition. The domestically-made product is claimed to have high quality and competitive price, produced by utilizing mineral reserves in Indonesia.

Thohir said, state electricity company PT PLN plays a crucial role in the transition toward electric vehicles. PLN has supplied electricity from green energy, and, along with the state energy firm PT Pertamina, it establishes the infrastructure for recharging.

He informed that the government also issues many policies to help people in the transition to electric vehicles, with one being an Rp7 million (US$468,67) in incentive for each motorbike unit converted to an electric motorbike.

Members of the State-owned Bank Association (Himbara) including BNI, BRI, and Mandiri will also assist in the efforts by offering schemes to facilitate purchases of electric vehicles, Thohir said.

Related news: ASEAN agrees to build electric vehicle ecosystem: Jokowi
Related news: Minister responds to criticism about EV subsidy
Related news: First ASEAN EV, battery technology conference held in Bali