The Ministry of Investment and Downstreaming\/Investment Coordinating\nBoard (BKPM) is encouraging the deepening of the value chain, ranging\nfrom electric vehicles (EVs), batteries, and solar panels to biofuels,\nas part of a low-carbon downstreaming strategy.<\/p>\n
The Secretary of the Ministry of Investment and\nDownstreaming\/Principal Secretary of BKPM, M. Rudy Salahuddin, stated\nthat the development of these industries is part of the mapping of 28\nstrategic commodities across eight main sectors. These sectors hold an\ninvestment potential of approximately $618.1 billion until 2040 and are\nprojected to create up to 3 million new jobs.<\/p>\n
\u201cThe value chains that need to be deepened include solar panel\ncomponents, biofuels, clean molecules such as sustainable aviation fuel\nand hydrogen, as well as electric vehicles, batteries, and battery\nenergy storage systems (BESS),\u201d he said in Jakarta on Tuesday.<\/p>\n
Rudy noted that these opportunities are expanding alongside the\ngrowth of global trade in electric vehicles and batteries. According to\nUN Comtrade Environmental Goods List data, trade in EVs and batteries\nincreased from approximately $90 billion in 2019 to nearly $450 billion\nby 2025.<\/p>\n
During the same period, trade in renewable energy technologies also\nrose from around $210 billion to over $350 billion.<\/p>\n
Rudy remarked that Indonesia possesses a strong foundation to\nintegrate more deeply into the low-carbon industrial market, supported\nby a national renewable energy potential of approximately 3,687\ngigawatts (GW). Solar energy represents the largest portion, at around\n3,294 GW. However, the currently utilised renewable energy capacity is\nonly about 16.33 GW, representing less than 0.5 per cent of the total\nnational potential.<\/p>\n
In addition to energy source potential, the development of low-carbon\nindustries is supported by the need for increased power generation and\nenergy storage capacity. Based on the Electricity Supply Business Plan\n(RUPTL) 2025-2034, Indonesia requires an additional generation and\nstorage capacity of 69.5 GW.<\/p>\n
Of this requirement, 42.6 GW (61 per cent) will come from renewable\nenergy, 10.3 GW from energy storage, and 16.6 GW from fossil fuel\nplants. The implementation of this RUPTL is projected to unlock\ninvestment opportunities of approximately Rp2,133.7 trillion, including\naround Rp1,341.8 trillion for renewable energy development through the\nIndependent Power Producer (IPP) scheme.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bkpm-strengthens-ev-biofuel-value-chain-for-low-carbon-downstreaming-1790672528", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }