Pertamina NRE Presents Development of Electric Vehicle Ecosystem at COP28 Dubai

Dubai, December 2, 2023 - Pertamina New Renewable Energy (NRE) is actively involved in Indonesia's electric vehicle ecosystem development. The adoption of electric vehicles represents a significant opportunity for Pertamina NRE, reinforcing Indonesia's efforts towards energy transition.

At the 2023 United Nations Climate Change Conference of Parties 28 (COP28), President Director of Pertamina NRE, Dannif Danusaputro, conveyed their commitment to developing the electric vehicle ecosystem.

"We will play a leading role in the infrastructure, charging stations, and the entire supply chain process for electric vehicles," he said during a discussion themed "E-Mobility: Balancing Sustainability and Growth in Critical Supply Chains" at the Indonesian Pavilion in Dubai, United Arab Emirates, on Friday (12/1).

Dannis mentioned that Pertamina NRE will develop two-wheeled electric vehicles. The company has already collaborated with several ride-hailing companies in Indonesia. This collaboration involves fleet operator development, drivers, and charging infrastructure. The company will also focus on developing battery packs for two-wheeled vehicles.

Moreover, in November 2023, Pertamina NRE partnered with PT VKTR Mobility Technology Tbk to initiate sustainable mobility solutions. Both companies introduced the Electric Mobility as a Service (e-MaaS) model to support the adoption of electric vehicles for urban public transportation services.

The e-MaaS model offers flexible financing for operating and maintaining electric vehicle buses, aiming to reduce reliance on government funding, thus saving costs for deploying environmentally friendly vehicles in major cities.

Dannif emphasized that the e-MaaS model also encompasses crucial infrastructure, such as charging stations and renewable energy sources.

During his presentation, Dannif stressed the importance of funding. He highlighted the necessity for funding to advance electric vehicle technology throughout the supply chain.

"This is crucial in the development of the electric vehicle ecosystem. Therefore, a robust and independent electric vehicle supply chain will materialize more quickly," Dannif stated.

Dannif also underscored another critical aspect: the diverse natural resources distributed across different regions. It makes connectivity pivotal in providing clean energy. Infrastructure and connectivity will facilitate the supply chain distribution, accelerating the realization of the electric vehicle ecosystem.

Pertamina NRE's support for the electric vehicle ecosystem aligns with President Joko Widodo's directive to expedite public transportation electrification, as stipulated in Presidential Regulation No. 55/2019 and Presidential Instruction No. 7/2022. All of Pertamina NRE's efforts aim to accelerate an environmentally friendly transportation supply chain ecosystem.

Shinta Kamdani, Coordinator Vice Chairman for Maritime, Investment, and Foreign Affairs at the Chamber of Commerce and Industry, mentioned that Indonesia holds significant potential in electric vehicle development.

"Although still in its early stages, Indonesia has immense potential, from utilizing raw materials to battery recycling. The private sector can also participate and seize opportunities in developing the electric vehicle supply chain ecosystem," Shinta stated.

Stimulating the adoption of electric vehicles, the government has implemented various measures to attract consumers, including incentives of IDR 7 million for new motorcycles or conversions. On the manufacturing side, there is a 10 percent Value-Added Tax deduction for Domestic Component Levels reaching 40 percent.

Meanwhile, Rachmat Kaimuddin, Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Investment highlighted Indonesia's active role as a primary electric vehicle supplier, not only nationally but also regionally.

"Indonesia could become a major player in supplying electric vehicles internationally. This effort can commence with exports to the Southeast Asian region," Rachmat said.

All panelists in the session agreed that utilizing raw materials like nickel presents a significant opportunity for Indonesia. Moreover, collaborative steps are needed to enhance capacity and technology, as well as leverage advantages for competitiveness. These efforts will smoothly progress with policy support from the government.

Also present at the session were Francois De Maricourt, President Director of PT Bank HSBC Indonesia, and Kwasi Ampofo, Head of Metals and Mining at BloombergNEF.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**