REPUBLIKA.CO.ID, JAKARTA \u2013 The government\u2019s plan to provide enhanced\nincentives for nickel-based electric vehicles is viewed as a move that\ncould accelerate mineral downstreaming and strengthen Indonesia\u2019s\nposition in the global electric vehicle battery supply chain.<\/p>\n
Executive Director of the Centre for Energy and Mining Law Studies,\nBisman Bakhtiar, considers the policy a strategic step to increase the\nvalue of nickel resources, which have long been one of Indonesia\u2019s key\ncommodities.<\/p>\n
In his view, Indonesia must ensure that its nickel resources do not\nstop at mining and raw material exports but are processed into\nhigher-value products such as EV batteries.<\/p>\n
\u201cThis incentive is crucial for boosting downstream value. Without\nrobust policies, we will merely remain a raw material supplier despite\nhaving the world\u2019s largest nickel reserves,\u201d Bisman said in Jakarta on\nTuesday, 26 May 2026.<\/p>\n
He added that incentive policies must align with strengthening the\nDomestic Component Level (TKDN) regulations to ensure economic benefits\nextend beyond increased EV sales and foster domestic component and\nbattery industries.<\/p>\n
Bisman stressed Indonesia must capitalise on the global EV industry\u2019s\nmomentum to become a key player in the battery value chain.<\/p>\n
\u201cWe must not merely be a market; we need to be a major player.\nIncentive policies and other facilitations must align with strengthening\ndomestic component industries,\u201d he said.<\/p>\n
Bisman also noted nickel-based batteries, or nickel manganese cobalt\n(NMC), still have strong prospects in the global EV market. These\nbatteries are superior for high-performance vehicles requiring longer\nranges.<\/p>\n
\u201cNMC\u2019s prospects remain excellent due to its advantages. Despite the\nrise of LFP technology, nickel retains a strategic position in the\nglobal EV market,\u201d he added.<\/p>\n
Previously, Finance Minister Purbaya Yudhi Sadewa stated the\ngovernment is preparing an EV incentive scheme with a 100%\ngovernment-covered Value Added Tax (VAT) for nickel-based EVs, while\nnon-nickel EVs would receive a 40% VAT subsidy.<\/p>\n
The government is also offering a subsidy of Rp5 million per electric\nmotorcycle unit. The programme aims to target around 200,000 EV units\nand will commence in June 2026.<\/p>\n
\u201cFor cars with nickel batteries, the VAT is fully covered by the\ngovernment. For non-nickel ones, it\u2019s less. This is to support nickel\ndownstreaming here so our nickel is properly utilised,\u201d Purbaya\nsaid.<\/p>\n
Efforts to downstream nickel into the EV battery industry continue,\nincluding a battery plant project developed by Indonesia Battery\nCorporation in Karawang.<\/p>\n
The facility is built through a partnership with Contemporary Amperex\nTechnology Co.\u00a0Limited and Ningbo Contemporary Brunp Lygend via a joint\nventure named Contemporary Amperex Technology Indonesia Battery. The\nplant, set to commence operations in July 2026, has an annual production\ncapacity of 6.9 gigawatt hours (GWh) and is expected to be a key pillar\nin developing the national EV battery ecosystem.<\/p>\n
The facility\u2019s presence is seen as a concrete step to strengthen\nnickel downstreaming and boost Indonesia\u2019s competitiveness in the global\nEV industry.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/experts-nickel-ev-incentives-could-accelerate-mineral-downstreaming-1780130112", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }