Coordinating Minister AHY Says Chinese EV Dominance Should Spur National Industry

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) has stressed that Indonesia must not be afraid of facing the dominance of Chinese electric vehicle (EV) manufacturers in the global market. Speaking at a press conference for the launch of Grab’s new electric fleet in Jakarta on Monday, Coordinating Minister AHY said competition should instead be a trigger to accelerate the development of a national electric vehicle industry with local brands and greater domestic content. “China can be said to dominate the world EV market, and many feel it is tough to face China. But let us not forget that starting out is always marked by imperfection, full of trial and error, then development followed by further research. Some of our neighbouring countries have also dared to and succeeded in developing their electric vehicle industries. I feel Indonesia also has that capability, that capacity; of course, we must not be afraid to compete,” he said. Therefore, the government is encouraging a gradual increase in the domestic component level (TKDN) until it is able to produce electric vehicles that are entirely manufactured in Indonesia. “We should use this as a spur for how we can present a local brand made in Indonesia. Starting with more TKDN components. So, let’s say it cannot yet be 100 per cent TKDN, but it must be increasingly more and dominant. Over time, it can truly be 100 per cent made in Indonesia and our technology will not be left behind. Because we have our best sons and daughters, our best engineers, and we can conduct joint research and joint production,” he said. “This is part of the spirit of opening cooperation with countries or large corporations in the world that also want to develop the EV industry domestically. But the president also often emphasises that we must have a strong determination to present a national automotive industry, and we are also starting with an electricity-based automotive industry,” he stated. “What the government is doing is building the ecosystem, including ensuring that the policies produced continue to favour encouraging industrial development and vehicle electrification. This includes tax incentives, incentives for industries and investors to develop, for example, batteries and the development of national cars, including electric motorcycles and so on,” AHY said. In addition, the government is also continuing to encourage the addition of Public Electric Vehicle Charging Stations (SPKLU) to make the use of electric vehicles more convenient, both on Java and in other regions of Indonesia.