Supporting ASEAN Regions Energy Security, Indonesia Encourages Electric Vehicle Ecosystem Development

The chairmanship of ASEAN 2023 mentioned that Indonesia focuses on encouraging the strengthening of ASEAN as an inclusive and sustainable economic region through building a regional health architecture, maintaining food and energy security, and maintaining financial stability. ASEAN seeks to implement transportation electrification and the use of renewable energy as a implementation in maintaining energy security

Related to this, President Joko Widodo also believes that ASEAN will be able to develop electric vehicles globally. This is also supported by ASEANs superior potential in the development of electric vehicles which has an estimated market of USD 2.7 billion by 2027.

"The development of electric vehicles has a major role in environmental sustainability, it is impacted by reducing greenhouse gas emissions, accelerating energy transition, decarbonizing the land transportation sector, achieving zero emission targets, and increasing energy security in the ASEAN region," said Coordinating Minister for Economic Affairs Airlangga Hartarto when delivering a virtual keynote speech at the ASEAN Climate Forum 2023 event on Saturday (2/09).

In order to encourage the development of electric vehicles in the ASEAN region, ASEAN member countries have agreed to build an electric vehicle ecosystem and become an important part of the world supply chain, with an emphasis on downstream industries. One of the concrete manifestations of this effort has been shown by the approval of a cooperation agreement contained in the ASEAN Leaders Declaration on Developing Regional Electric Vehicle (EV) Ecosystem at the 42nd ASEAN Summit in Labuan Bajo a few moments ago.

The cooperation and collaboration on electric vehicle development includes improving infrastructure and charging, creating a conducive business and investment climate to attract investment, optimizing the production and use of sustainable materials and resources to achieve higher value creation from the electric vehicle supply chain, and promoting the use of renewable energy in ASEAN countries.

Furthermore, Indonesia also has an important role in developing the electric vehicle industry ecosystem from upstream to downstream with a production target of 600 thousand units of electric cars and 2.45 million electric motorbikes per year by 2030. Based on data revealed above, Indonesia is predicted to be able to help reduce carbon emissions by 3.8 million tons.

"We appreciate the entire Committee of ASEAN Business Advisory Council (ASEAN BAC) for organizing The ASEAN Climate Forum 2023. Hopefully, this forum can focus on a comprehensive Net Zero Emission (NZE) 2060 framework, affordable energy transition, decarbonization strategies, and sustainable financing," Airlangga said