Mining Electrification Can Succeed, Ministry of Industry Reveals Conditions

The Director of the Machinery and Agricultural Equipment Industry at the Ministry of Industry, Solehan, stated that the use of electric vehicles (EVs) for mining operations requires a comprehensive approach. This is because the approach differs from the use of electric vehicles for public transportation. In this approach, regulators and facilitators are also involved. The policy not only focuses on replacing heavy equipment based on Internal Combustion Engines with electric-based heavy equipment, but also on building the ecosystem. “The two main mining operational aspects are the dump trucks themselves, then hybrid excavators, bulldozers, and other supporting infrastructure, integration of renewable energy sources, and energy cold storage systems,” he explained during the EV Transition in Mining Industry Outlook 2026 event on Wednesday (29/4/2026). Solehan also outlined that the government is preparing incentives for the use of electric vehicles (EVs) in mining operations. Similar incentives were previously included in Presidential Regulation Number 79 of 2023 on Amendments to Presidential Regulation Number 55 of 2019 on the Acceleration of the Battery-Based Electric Motorised Vehicle Programme (Battery Electric Vehicle) for Road Transportation. He emphasised that this regulation demonstrates the government’s strengthening of the legal foundation for efforts to transition to electric vehicles in mining activities. “So, from the heavy equipment producers’ perspective, they indeed look at the completeness, for example in mining, nickel; if there is demand, then the producers of electrified heavy equipment will follow,” he said. It is known that the mining industry is a supporter of sustainable development worldwide, particularly in providing raw materials for batteries and electric vehicles to accelerate the achievement of the Global Net Zero Emission (NZE) target in 2050 and Indonesia’s in 2060. Electrification in the mining industry can also bring various benefits, such as reducing fuel costs, decreasing maintenance needs, improving worker safety, and enhancing Environmental, Social, and Governance (ESG) performance. Solehan continued that this acceleration is driven by the momentum of mining service growth, technological developments, and ESG initiatives both globally and domestically. “We have extraordinary natural resources and many comparative advantages in mines and smelters. Indonesia has strong opportunities, for example in nickel. Now there is only LFP (Lithium Iron Phosphate). If it’s nickel, then NMC (Nickel-Manganese-Cobalt). This requires downstream processing. This is important so that downstream processing not only uses technology but also drives manufacturing industry growth,” he concluded.