ASEAN agrees to build electric vehicle ecosystem: Jokowi
11 May 2023
ASEAN countries have agreed to build an electric vehicle (EV) ecosystem and become an important part of the world supply chain, with the downstream industry playing a crucial role in this plan, according to President Joko Widodo (Jokowi).
“ASEAN has agreed to build an electric car ecosystem and become an important part of the world supply chain. The downstream industry is key to realizing this,” he stated during a press conference of the 42nd ASEAN Summit in Labuan Bajo, East Nusa Tenggara (NTT), on Thursday.
The downstream industry involves the processing of raw materials as an effort to offer greater added value to the market.
He remarked that the summit adopted the Regional Electric Vehicle Ecosystem Development Declaration, with tasks the ASEAN Economic Community Council with overseeing its implementation.
In the declaration, the leaders stated that ASEAN is committed to building a regional electric vehicle ecosystem that involves all member countries.
All ASEAN member countries also support the adoption of the electric vehicle agenda and the development of the electric vehicle industry in ASEAN countries.
Furthermore, the leaders are committed to building ASEAN as a global production hub for the electric vehicle industry to support the region’s sustainable economic growth.
This step was taken by considering the policies of ASEAN member countries in utilizing comparative advantage.
Earlier, Jokowi noted that the estimated market for electric vehicles in Indonesia would reach US$2.7 billion in 2027.
With 23 percent of the world’s nickel reserves, Indonesia is developing an electric vehicle industry ecosystem from upstream to downstream, he added.
He aims to achieve a production of 600 thousand electric cars and 2.45 million electric motorcycles per year in 2030, with a total reduction of 3.8 million tons of carbon dioxide emissions.
The 42nd ASEAN Summit will address four priorities for cooperation: strengthening the health architecture, enhancing food security by ensuring smooth supply chains and trade facilities, boosting energy security including developing the electric vehicle ecosystem, and reinforcing financial stability to manage external shocks.