Abundant Natural Resources: DBS Indonesia Unveils EV Development Opportunities in Indonesia
The Director of the Institutional Banking Group at Bank DBS Indonesia, Antonius Sehonamin, stated that vehicle electrification is a major trend currently shaping the future direction of the automotive industry. He noted that Indonesia possesses a strategic advantage due to its rich natural resources, particularly in the upstream sector.
He mentioned that Indonesia holds significant reserves of nickel and copper, which serve as essential capital for the downstream development of the national automotive industry. However, he emphasised the importance of establishing an end-to-end value ecosystem, encompassing everything from advanced manufacturing to the battery sector, including energy storage, battery production, and recycling.
“To achieve this, we see three essential pillars: there must be investment, there must be capability, and there must be ecosystem development,” he remarked during a Coffee Morning event titled “Building a Resilient Automotive Ecosystem Beyond EV Amid Global Supply Chain Shift,” organised by CNBC Indonesia in collaboration with DBS Indonesia on Thursday.
Antonius asserted that the automotive industry must be viewed as a single, integrated ecosystem rather than separate segments. In this context, he noted that the banking sector, including DBS, plays a vital role in supporting the entire industrial value chain.
“For DBS, we aim to be the banking partner for the key players,” he said.
He added that DBS monitors the entire automotive business chain, from the upstream sector and Original Equipment Manufacturers (OEMs) to distributors and dealers. In addition to offering comprehensive banking solutions, Antonius noted that DBS possesses regional connectivity advantages that can support cross-border transactions for automotive industry players in Indonesia.
During the same event, Ello Hanson, Executive Director, Head of Large Corporates, and ESG Lead of the Institutional Banking Group at Bank DBS Indonesia, stated that the automotive sector, including EVs, is a focus for DBS financing. He explained that DBS provides financing by evaluating both risks and opportunities, noting that Indonesia holds immense potential for EVs.
“As a bank providing financing, our focus is on anything industrial. For example, whether used in Internal Combustion Engine (ICE) vehicles or EVs, components such as tyres, electrical systems, air conditioning, audio, and braking systems are components that will continue to be in demand, regardless of whether the vehicle is ICE or EV,” he concluded.