Electric vehicles must absorb local products
"For example, the products made of rubber that are used in the car, are made domestically and should be supplied to the factory," Luhut Binsar Pandjaitan said in Jakarta, Friday
Also, as per the rules, the presidential regulation (Perpres) on electric vehicles (EVs) should be monitored, so that investors of electric cars receive the incentives, Luhut said.
About the technological advances, there was an offer to develop electric car technology, he explained.
Baca juga: Electric vehicles to gain traction in Indonesia
"If we can develop electric car technology, batteries and engines can be produced in the country. We can also supply biodiesel for operational purposes. Those efforts will have a good impact on the economy," Luhut said.
The Ministry of Industry earlier targeted investment in the battery industry for electric vehicles. The industry is projected to grow and develop in the country.
This is in line with the implementation of Presidential Regulation No. 55 of 2019 concerning the acceleration of battery operated vehicles for road transportation.
"The regulation encourages optimization of local content to increase competitiveness and deepen the structure of our industry," Minister of Industry Airlangga Hartarto remarked.
One of the important aspects in accelerating production of the electric vehicle industry is the preparation of supporting industries such as power control units (PCU), electric motors and batteries.
Based on the data, increasing investment in Indonesia for the industrial sector that will produce electric vehicle batteries only needs one more stage, such as investment in the battery cell industry.
Other investments in mine concentrations, refinery and electrochemical production are already a part of the Morowali Industrial Zone (IMIP) in Central Sulawesi.
Baca juga: Indonesian-made electric cars can be competitively priced: Jokowi
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