The Chairman of Commission VII of the Indonesian House of\nRepresentatives (DPR RI), Saleh Parta0f6naan Daulay, believes the\nelectric vehicle (EV) industry is gaining significant momentum and has\nbecome a priority, not only for the DPR but also for President Prabowo.\nAccording to Saleh, President Prabowo envisions Indonesian-made\nvehicles, specifically electric cars, being exported to various\ncountries.<\/p>\n
\u201cThe electric vehicle business is a global trend. As a country with a\nlarge population, we are currently lagging far behind China and India,\nwhich also have large populations but are becoming increasingly\ncompetitive,\u201d stated Saleh during an event titled \u201cBuilding a Resilient\nAutomotive Ecosystem Beyond EV Amid Global Supply Chain Shift,\u201d\norganised by CNBC Indonesia in collaboration with DBS.<\/p>\n
He noted that China is the leader in the EV industry, followed by\nIndia and the United States. Saleh believes Indonesia should aim for the\nfourth position, seizing the current momentum and opportunities.<\/p>\n
\u201cWithin the current automotive industry, much can be achieved,\nincluding increasing global competitiveness. Furthermore, many of our\ncitizens are working abroad in this industry. This position must be\nreclaimed so that these individuals can return to work in Indonesia,\nproviding benefits amidst current economic and geopolitical tensions,\u201d\nSaleh detailed.<\/p>\n
Consequently, Saleh ensured that the DPR is playing a role in\ndeveloping the EV business in Indonesia. He stated that the DPR is\ncurrently working on harmonising regulations to ensure fairness.<\/p>\n
Saleh understands that for the industrial sector, it is vital to\nensure that investment proceeds securely. Therefore, his party is\ndeveloping regulations and rules to be adhered to by all\nIndonesians.<\/p>\n
\u201cThe DPR will conduct studies to serve as the basis for new\nlegislation regarding EVs, which will act as a reference for the\ndevelopment of electric vehicles in Indonesia,\u201d he concluded.<\/p>\n
Meanwhile, the Director of the Institutional Banking Group at DBS\nBank Indonesia, Antonius Sehonormin, noted that the domestic automotive\nindustry is currently facing various shifts, both in terms of technology\nand global supply chains.<\/p>\n
\u201cWe see a transition in the automotive industry at all levels; there\nare factors influencing electrification, affordability, economic\nproductivity, utilisation, and operational efficiency,\u201d said\nAntonius.<\/p>\n
Antonius explained that regarding competitiveness, DBS has noted at\nleast three major trends shaping the future direction of the automotive\nindustry: first, vehicle electrification; second, supply chain\nlocalisation; and third, the utilisation of artificial intelligence\n(AI), data, and technology.<\/p>\n
He noted that production capacity is no longer the sole determinant\nof an automotive company\u2019s competitiveness. Other factors, such as\ntechnological adaptation and operational efficiency, are becoming\nincreasingly decisive for players in this industry.<\/p>\n
\u201cFrom the players we observe, they must demonstrate adaptability and\nadjustment to the factors that will determine future competitiveness,\u201d\nAntonius explained.<\/p>\n
Antonius highlighted Indonesia\u2019s advantage in terms of its rich\nupstream resources, such as nickel and copper, which serve as essential\ncapital for the national automotive industry\u2019s downstreaming process.\nHowever, he emphasised the importance of building an ecosystem that\ncovers the entire end-to-end value chain, ranging from advanced\nmanufacturing to the battery sector, including energy storage, battery\nproduction, and recycling.<\/p>\n
\u201cFor all of this, we see three necessities: there must be investment,\ncapability, and ecosystem development,\u201d he stated.<\/p>\n
Furthermore, DBS observes a shift in supply chain management\napproaches in the automotive industry, moving from the \u201cjust-in-time\u201d\nconcept to what Antonius calls \u201cjust-in-scale.\u201d This approach is\ndescribed as more anticipatory and oriented towards optimisation to\nbuild resilience in inventory management, supply chains, and local\nmanufacturing capacity.<\/p>\n
This shift, according to Antonius, also drives the importance of\nmature capital allocation, for both short-term and long-term needs, to\nsupport the investment and working capital requirements of companies\nwithin the automotive sector.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/competitive-ev-landscape-indonesia-must-act-to-avoid-falling-behind-1789549269", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }