Erick Thohir, Indonesian Minister of State-Owned Enterprises, responded to President Joko Widodo’s directive to encourage cooperation in developing the electric vehicle (EV) ecosystem with the Vietnamese government. Minister Erick emphasized that Indonesia is currently highly committed to building the electric vehicle battery industry.
“We are open to Vietnamese state-owned enterprises that wish to invest in our country, as our focus is on the battery segment. Whether their investment is in local vehicles like motorcycles, we are open to that,” Erick stated on September 5, 2023.
Erick conveyed that the government does not differentiate investments based on the country of origin. Therefore, BUMNs (State-Owned Enterprises) that are part of the EV ecosystem are prepared to collaborate with Vietnamese companies.
Arsjad Rasjid, the Chairman of the Chamber of Commerce and Industry (KADIN), meanwhile sees significant potential for investment in the development of the EV ecosystem between Indonesia and Vietnam. However, he noted that the potential investment is still in its early stages.
Arsjad explained that discussions regarding the development of the industry are ongoing, and both countries will invest in each other’s EV ecosystems. In simple terms, Indonesian EV battery companies will invest in Vietnam, while Vietnamese EV assembly companies will invest in Indonesia.
He pointed out that several sectors would benefit from this investment, including EV batteries and EV components. Arsjad assured that the investment would cover the entire EV ecosystem in both Indonesia and Vietnam.
“Meaning, all EV production sectors from upstream to downstream. But this is still in the early stages, so the investment realization won’t happen immediately,” Arsjad stated.
Prospects and potential for bilateral EV investment
Previously, Presidential Chief of Staff Moeldoko mentioned that the government is discussing cooperation with ASEAN countries concerning electric vehicles. This aligns with the government’s goal to establish Indonesia as the hub of the EV ecosystem in ASEAN.
Moeldoko emphasized that agreements on cooperation and investment need to be reached. He mentioned that discussions regarding EV cooperation encompass both upstream and downstream aspects. Moreover, Indonesia possesses significant nickel resources, constituting 25% of the world’s reserves.
“If we start from the downstream, we are discussing whether the resources owned by Indonesia can be collectively directed towards battery production in the ASEAN region,” Moeldoko stated, on September 5, 2023.
The potential collaboration between Indonesia and Vietnam in the electric vehicle sector holds promise for the development of a sustainable and mutually beneficial EV ecosystem in the region.
