Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita discussed cooperation for the development of electric vehicles (EVs) and the petrochemical sector with China, considering the quite large potential benefits of these two sectors for each country.

In a statement from his ministry here on Thursday, the minister said he had met with Minister of Industry and Information Technology of China Jin Zhuanglong during a working visit to Beijing on June 12-13, 2024.

On that occasion, he affirmed that the EV industry opportunities in Indonesia are still broad. This is in line with the policy of the government since 2019 that is committed to starting to develop advanced environmentally oriented and low-emission technology, with battery electric vehicles (BEV) as the main priority.

"Out of six BEV industries operating in Indonesia, four are BEV industries from China. This not only showed the trust of Chinese industries in the Indonesian market but also bolstered the economic relations between the two countries," he remarked.

According to Kartasasmita, Indonesia is a strategic choice as a production and export center for EVs, especially right-hand drive vehicles that can be sold to 54 user countries.

Related news: Indonesia's two-wheeled EV sales surge 262 percent in 2023

To this end, the ministry is encouraging China's EV industries to increase the automotive industry's contribution to export value through BEVs as well as inviting them to start using Nickel Manganese Cobalt (NMC) battery cells in the EV industry.

As for the petrochemical industry, he assessed that opportunities for new investment are wide open and profitable, especially for investors who are experienced in this sector.

This is based on the national petrochemical industry's capacity, which currently reaches more than 14 million tons per year, though it is still not able to meet demand in the country.

Hence, to this end, he invited business players in the petrochemical sector to expand their businesses in Indonesia.

"We know that China is one of the global petrochemical players that has succeeded in optimizing various oil and gas and coal resources into superior chemical products," he remarked.

Related news: Indonesia-made batteries can cut EV prices by 30 percent: Minister

Translator: Ahmad Muzdaffar, Raka Adji
Editor: Yuni Arisandy Sinaga
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