At the 2023 United Nations Climate Change Conference of Parties 28 (COP28), Dannif Danusaputro, President Director of Pertamina New Renewable Energy (NRE), a subsidiary of state-owned oil and gas company, conveyed their commitment to developing the EV ecosystem.
"We will play a leading role in the infrastructure, charging stations, and the entire supply chain process for electric vehicles," he noted during a discussion themed "E-Mobility: Balancing Sustainability and Growth in Critical Supply Chains" at the Indonesian Pavilion in Dubai, the United Arab Emirates, on Friday (Dec 1).
Dannis remarked that Pertamina NRE will develop two-wheeled EVs. The company has already collaborated with several ride-hailing companies in Indonesia. This collaboration involves fleet operator development, drivers, and charging infrastructure. The company will also focus on developing battery packs for two-wheeled vehicles.
Moreover, in November 2023, Pertamina NRE partnered with PT VKTR Mobility Technology Tbk to initiate sustainable mobility solutions. Both companies introduced the Electric Mobility as a Service (e-MaaS) model to support the adoption of EVs for urban public transportation services.
The e-MaaS model offers flexible financing for operating and maintaining EV buses, with the aim of reducing reliance on government funding, thereby saving costs for deploying environmentally friendly vehicles in major cities.
Dannif emphasized that the e-MaaS model also encompasses crucial infrastructure, such as charging stations and renewable energy sources.
During his presentation, Dannif stressed the importance of funding. He highlighted the need for funding to advance EV technology throughout the supply chain.
"This is crucial in the development of the electric vehicle ecosystem. Therefore, a robust and independent electric vehicle supply chain will materialize more quickly," Dannif stated.
Dannif also underscored another critical aspect of the diverse natural resources distributed across different regions. It makes connectivity pivotal in providing clean energy. Infrastructure and connectivity will facilitate supply chain distribution, accelerating the realization of the EV ecosystem.
Pertamina NRE's support for the EV ecosystem aligns with President Joko Widodo's directive to expedite public transportation electrification, as stipulated in Presidential Regulation No. 55 of 2019 and Presidential Instruction No. 7 of 2022. Pertamina NRE's efforts aim to accelerate an environmentally friendly transportation supply chain ecosystem.
Coordinator Vice Chairman for Maritime, Investment, and Foreign Affairs at the Chamber of Commerce and Industry, Shinta Kamdani, stated that Indonesia holds significant potential in EV development.
"Although still in its early stages, Indonesia has immense potential, from utilizing raw materials to battery recycling. The private sector can also participate and seize opportunities in developing the electric vehicle supply chain ecosystem," Shinta stated.
Encouraging the adoption of EVs, the government has implemented various measures to attract consumers, including incentives of Rp7 million for new motorcycles or conversions. On the manufacturing side, there is a 10 percent Value-Added Tax deduction for Domestic Component Levels reaching 40 percent.
Meanwhile, Rachmat Kaimuddin, deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Investment, highlighted Indonesia's active role as a primary EV supplier, not only nationally but also regionally.
"Indonesia could become a major player in supplying electric vehicles internationally. This effort can commence with exports to the Southeast Asian region," Rachmat remarked.
All panelists in the session agreed that utilizing raw materials, such as nickel, presents a significant opportunity for Indonesia. Moreover, collaborative steps are needed to enhance capacity and technology as well as leverage advantages for competitiveness. These efforts will progress smoothly with policy support from the government.
President Director of PT Bank HSBC Indonesia Francois De Maricourt and Head of Metals and Mining at BloombergNEF Kwasi Ampofo were also present at the session.
Pertamina, as a leading company in energy transition, is committed to supporting the Net Zero Emission 2060 target by unceasingly promoting programs that directly impact the achievement of Sustainable Development Goals (SDGs). All these efforts align with the Environmental, Social & Governance (ESG) implementation across Pertamina's business lines and operations.
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