Jakarta (ANTARA) - Indonesia's success in maintaining economic resilience and growth and political stability amidst the complexity of the global economic environment has enabled the country so potentially to develop its electric vehicle (EV) industry, a cabinet member said.

The fact of successfully conducting peaceful general elections and transition process of government without significant turmoil could become the right momentum for EV companies to develop their businesses in Indonesia, Deputy Trade Minister Jerry Sambuaga said.

Sambuaga further conveyed in a statement that his office issued here Sunday that Indonesia managed to record a trade balance surplus of US$4.47 billion in March 2024. This surplus has been maintained for 47 consecutive months since May 2020.

He stated that the government has several strategic policies, including the nickel downstream policy.

This policy has been able to increase added value to the economy, open job opportunities, and strengthen Indonesia's position in the global supply chain, Sambuaga remarked.

"The government is also pursuing the development of technology to reduce pollution and dependence on fossil fuels. This is supported by Indonesia's large natural nickel resources which have the potential to become a base for EV production in Asia," he continued.

Referring to the Bloomberg NEF assessment, Indonesia ranked 22nd out of 30 countries that can increase its investment attractiveness in the electric battery supply chain ecosystem. This assessment was based on several aspects, including industry, innovation, and infrastructure, he said.

"The availability of raw materials, battery manufacturing, demand in the downstream sector, and policies related to the environment, society, and governance are also included in the assessment. Indonesia is expected to attract investors in the electric battery supply chain ecosystem immediately," the deputy minister said.

Currently, the government continues to encourage energy transition efforts to achieve the National Determined Contribution (NDC). Indonesia is committed to increasing its emissions reduction target from 29 percent to 31.89 percent without international assistance.

Sambuaga also noted that energy transition efforts have the potential to allow investment opportunities worth US$3.5 trillion for Indonesia.

In addition, Indonesia is in the stages of becoming a member of the Organisation for Economic Co-operation and Development (OECD). As the country with the largest economy in Southeast Asia, Indonesia's OECD membership will also increase the profile and significance of the OECD, he added.

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Translator: Maria Cicilia G P, Resinta Sulistiyandari
Editor: Rahmad Nasution
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