ASIATODAY.ID, JAKARTA – The Indonesian government is targeting the development of 2 million four-wheeled electric vehicles and 13 million two-wheeled electric vehicles by 2030. It is hoped that from this target there will be energy savings of 29.79 Million Barrel Oil Equivalent (MBOE) and a reduction in exhaust emissions of 7.23 million CO2.
“This target is part of the strategy to accelerate the electric vehicle program and its ecosystem, as well as to accelerate the energy transition towards Net Zero Emission (NZE) by 2060,” said Special Staff of the Indonesian Minister of Energy and Mineral Resources, for the Acceleration of Industrial Development, Agus. Tjahjana, at the workshop forum ‘Clean Energy for Indonesian Industrial Zones: Battery-to-Electric Vehicle (B2EV)’ in Jakarta, Tuesday, 21 May 2024.
Agus said that Indonesia is focusing on efforts to develop the electric vehicle battery ecosystem supply chain, from upstream to downstream, considering that Indonesia is blessed with quite large nickel potential to support the development of the electric vehicle ecosystem industry.
“Currently, the processing of nickel ore into nickel and cobalt sulfate already exists. The next projects that need to be implemented and promoted are the manufacture of battery precursors, cathodes, battery cells and batteries, considering that the electric charging and battery recycling industries also already exist, ” he explained.
Agus detailed that currently in Indonesia there are nine companies that process nickel ore into nickel and cobalt sulfate, which is one of the materials used in making electric vehicle batteries. Four of the companies are already operating, three are in the construction stage, and the rest are still undergoing feasibility studies.
“The four-wheeled electric vehicle battery industry in Karawang has been operating with a capacity of 10 GWh this month,” he added.
Apart from that, Agus added that the electric vehicle ecosystem also needs to be supported by strong charging infrastructure. It was recorded that in April 2024, the total number of charging stations available had reached 1,566 units, while battery swap units were 1,772 units. The government targets to add up to 48,118 charging stations and 196,179 swap stations by 2030.
However, Agus stated that to achieve this all requires collaboration and contributions from all parties, including government, private sector, academics, society and international partners.
“The energy transition target is very challenging and ambitious because it requires innovative low-carbon technology, supporting industry, massive funding, as well as strong commitment and collaboration from all parties,” he concluded.
Incentive
Meanwhile, Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana revealed that the Ministry of Energy and Mineral Resources continues to accelerate the development of its supporting infrastructure so that an electric vehicle ecosystem is formed.
“The Indonesian government has set an ambitious target for the implementation of electric vehicles, aiming to have 2 million electric cars and 13 million two-wheeled electric vehicles on the road by 2030,” said Dadan in a High-Level Closed-Door Ministerial Discussion panel discussion. part of a series of activities at the IEA’s 9th Global Conference On Energy Efficiency (GCEE) in Nairobi, Kenya, Wednesday, May 22.
Currently, Dadan admits that there is still a large price gap between electric vehicles and conventional vehicles. To cover this price gap, the Indonesian government provides tax incentives and subsidies for electric cars, hybrid cars and electric motorbikes.
“Indonesia has prepared US$455 million to subsidize the sale of electric motorbikes. The subsidy covers the sale of 800 thousand new electric motorbikes and the conversion of 200 thousand combustion engine motorbikes,” said Dadan.
Dadan further said, to support the formation of an electric vehicle ecosystem, the Government continues to increase the construction of electric vehicle charging stations (SPKLU), which is estimated that by 2030, 32,000 SPKLU units will be needed to meet the increasing demand.
Along with the development of public charging stations, the availability of chargers at home is equally important for creating a comprehensive charging infrastructure. To facilitate charging at home, PT PLN offers incentives such as special prices for electrical system upgrades and reduced rates for overnight charging. These measures are designed to encourage more residents to adopt electric vehicles by making charging convenient and cost-effective.
Additionally, apart from focusing on the electrification of passenger road transport, the Indonesian Government also recognizes the significant contribution of road transport to CO2 emissions in the country. As a strategic response, the Indonesian Government is currently developing fuel economy standards for heavy vehicles, as a key to reducing emissions in the short and medium term.
“To further reduce transportation emissions, this year, the government has allocated 11.8 million tonnes of biodiesel along with the launch of a 35% blend of palm oil for biodiesel or known as B35. This program can reduce greenhouse gas emissions by around 34.9 million tonnes of CO2. “The Indonesian government strongly believes that a combination of regulations, information and incentives can encourage energy efficiency and mitigation measures in the transportation sector,” concluded Dadan.
Progress on the Energy Transition in Indonesia
The Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif, conveyed the progress of Indonesia’s energy transition efforts since COP 28 in Dubai last November-December 2023, at the 9th Virtual Meeting of the Energy Transition Council (ETC) Ministerial, Wednesday, 22 May 2024.
At the forum, Arifin had an online dialogue with British Minister of State for Energy Security and Net Zero Justin Tomlinson and Philippine Department of Energy Secretary Raphael P.M. Lotilla.
Arifin said that Indonesia had submitted its Enhanced Nationally Determined Contribution (e-NDC) and created a Net Zero Emission (NZE) Roadmap for the energy sector. In the e-NDC document, Arifin added, Indonesia will further reduce emissions, from the previous target of 29 percent to 32% by 2030.
“We have submitted an e-NDC document which will further reduce emissions from 29% to 32% in 2030. We have also built an NZE roadmap in the energy sector which will be achieved in 2060 or sooner through the clean energy transition,” said Arifin at the forum the.
Currently, the Indonesian Government is preparing a Second NDC document which contains various new commitments to achieve the Green House Gas emission reduction target with its own capabilities and international support from 2031 to 2035, which is in line with the 1.5 degrees Celsius scenario. The Second NDC will compare the reduction in Green House Gas emissions against the reference year 2019. So it no longer uses the business as usual baseline.
In the Second NDC document, Indonesia will also update the transparency framework which includes the National Registry System (SRN) and MRV (measurement, reporting and verification). Apart from mitigation commitments, Indonesia will also further strengthen its climate change adaptation commitments based on the implementation of Enhanced NDC.
Arifin said that the Indonesian Government is very confident that it can achieve the target of achieving NZE by 2060, although there are still several challenges that must be resolved. These challenges include the potential for diverse renewable energy sources, but they are spread across various points throughout Indonesia which are far from main demand.
“Therefore, we need to develop interconnection infrastructure through electricity networks and gas pipelines to support regional energy integration and economic development. Indonesia will develop a Super Grid to support the development of renewable energy, resolve the gap between producers and consumers, as well as intermittent renewable energy. Pipelines “gas will also be built from Sumatra to Java to take full advantage of our gas resources,” he explained.
Apart from that, Arifin believes that technological developments on an industrial scale need to be accelerated and made easier to maximize the use of renewable energy. Indonesia also needs to expand its downstream mineral processing industry to build an ecosystem and supply chain that supports the energy transition, as well as creating new jobs.
Regarding financial support, Arifin said that the development of clean energy transition projects and their supporting industries will require funding and other financial support.
“There are several initiatives such as JETP, AZEC, IPEP that are currently underway. However, we need further financial support to accelerate the achievement of NZE, especially in areas that are less attractive to the private sector, such as coal phasing out and network modernization and expansion electricity,” concluded Arifin.
The Energy Transition Council (ETC) was formed under COP 26 and launched on 21 September 2020 and is co-chaired by COP26 President, Alok Sharma; and UN Secretary General’s Special Representative for Sustainable Energy & CEO of Sustainable Energy for All (SEforAll), Mrs. Damilola Ogunbiyi.
ETC is a member of multilateral and regional organizations in the fields of sustainable development and finance. The ETC Meeting wants to encourage an increase in the commitment of signatory countries to the Paris Agreement to reduce emissions. (AT Network)
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