Jakarta (ANTARA) - Indonesia will be able to decrease the domestic prices of electric vehicles (EV) by up to 30 percent by taking the initiative to manufacture its own EV batteries, Minister of Industry Agus Gumiwang Kartasasmita stated.

"I believe that the prices of electric cars will drop by 20-30 percent," he remarked in Jakarta on Thursday (March 28).

He noted that EV batteries had been quite costly, with the prices equivalent to 40-50 percent of the prices of EV cars.

On that note, Kartasasmita suggested that Indonesia resort to producing the batteries domestically in a bid to directly cut the prices of the eco-friendly vehicles.

The minister further highlighted that in addition to decreasing the prices of electric cars, domestically manufactured EV batteries would also lead to an increase in the value of the domestic component level (TKDN) of such vehicles.

He expressed optimism that such Indonesia-made EV batteries would also attract more business actors to invest in the country.

"With our domestic industry producing our own batteries, the TKDN value will increase, and more investments will come in," he pointed out.

Earlier, Kartasasmita revealed that French and Vietnamese automotive companies, Renault and VinFast, had conveyed their readiness to place capital in Indonesia.

He said the Industry Ministry had been in close coordination with the two business entities, adding that their investments are expected to support the development of an EV ecosystem in Indonesia.

It is essential to build EV factories in Indonesia to achieve the target of market absorption and bolster the country's competitiveness in the global market, he stated.

He also noted that the domestic automotive industry is expected to produce nine million electric motorbikes and 600 thousand electric cars and buses.

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Translator: Ahmad M, Tegar Nurfitra
Editor: Rahmad Nasution
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