BKPM Strengthens EV-Biofuel Value Chain - BCA Securities

The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is encouraging the deepening of the value chain, ranging from electric vehicles (EV), batteries, and solar panels to biofuels, as part of a low-carbon downstreaming strategy.

The Secretary of the Ministry of Investment and Downstreaming/Principal Secretary of BKPM, M. Rudy Salahuddin, stated that the development of these industries is part of the mapping of 28 strategic commodities across eight main sectors. These sectors hold an investment potential of approximately $618.1 billion until 2040 and are projected to create up to 3 million new jobs.

“The value chains that need to be deepened include solar panel components, biofuels, clean molecules such as sustainable aviation fuel and hydrogen, as well as electric vehicles, batteries, and battery energy storage systems (BESS),” he said in Jakarta on Tuesday.

Rudy assessed that these opportunities are becoming increasingly accessible alongside the rise in global trade for electric vehicles and batteries. According to UN Comtrade Environmental Goods List data, trade in electric vehicles and batteries increased from approximately $90 billion in 2019 to nearly $450 billion by 2025.

During the same period, trade in renewable energy technologies also increased from around $210 billion to more than $350 billion.