Electric car must contain local components: minister

The production of electric vehicles must include locally manufactured components such as rubber, the Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan has stated. "For example, the products made of rubber that are used in the car, are made domestically and should be supplied to the factory," he 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.

Read also: Indonesian-made electric cars can be competitively priced: President

"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.

Read also: ULM uses its own electric car on campus

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.

Read also: Jakarta should use electric cars to improve air quality: Jokowi
Read also: President expected to sign regulation on electric cars this week
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