More than 30 mostly Asian companies are participating at the inaugural Periklindo Electric Vehicle Show, organised by the Indonesian Electric Vehicle Industry Association.
The show comes as Indonesian president Joko Widodo is setting up green initiatives to drive economic growth, pledging last year to achieve carbon neutrality by 2060. One plan is for electric vehicles to make up 20% of all automobile production in the country by 2025. To get there, Jakarta is offering tax incentives to manufacturers.
The country is also leveraging its huge reserves of nickel, an essential resource in the EV supply chain, to entice global manufacturers to set up shop in the country.
“Indonesia has an extraordinary role in the development of electric cars in the world, not only in Indonesia … because Indonesia has various resources that can be a supporting element for the global development of electric cars,” Moeldoko, president chief of staff and chairman of the association, told reporters.
Having established themselves in their home market, a growing number of Chinese EV makers are casting their eyes on Indonesia. Wuling Motors, DFSK and Qianjiang-owned Keeway Motor have signed up for the event. Electric scooter maker Niu Technologies is also on the list.
Gatot, a DFSK representative, described Indonesia as an “important market” for the Chinese company. He said it is now focusing on promoting a commercial vehicle rolled out in Indonesia in 2021, as there are “many delivery services” in the country, said the official, who uses one name.
Indonesia’s economy has been transformed in recent years by the rise of digital-focused startup companies such as e-commerce giant Bukapalak and GoTo, which offers a super app that includes ride-hailing and other services.
Asian EV companies have started manufacturing in Indonesia or are revving up to do so. South Korea’s Hyundai Motor, which is at the show, began full-scale production at its new factory in March. China’s SAIC-GM-Wuling has unveiled a new mini EV slated to start rolling off an Indonesian assembly line by the end of this year.
Japanese automakers account for around 80% of new car sales in Southeast Asia but are starting to lose some of their big lead. But they are mostly giving the event a pass, in contrast with China’s large presence. Japan’s Mitsubishi Fuso Truck and Bus, which is showing an electric concept model, is one exception.
Widodo, as president of the Group of 20 leading economies this year, hopes to showcase his country’s ambitions on the global stage.
Gatot, the DSFK representative, said that the G-20 is a good opportunity to show off its model which will be used at the summit venue in November.