Optimizing Indonesian Nickel, Pertamina Ready to Develop EV Battery Ecosystem

Davos, January 22, 2023 - PT Pertamina (Persero) is determined to continue playing a significant role in developing electric vehicle battery ecosystem in Indonesia by optimizing domestic resources.

"We are confident that with nickel reserves in Indonesia, we can produce batteries and increase EV penetration," Nicke Widyawati at the Indonesian Pavilion, World Economic Forum, in Davos.

According to her, Pertamina has infrastructure that can be optimized for EV penetration and has segmentation data on characteristics, mobility, and purchasing power.

Moreover, Pertamina has more than 7,400 petrol stations, 6,100 Pertashops, and 63,000 LPG outlets. Pertamina is also ready to collaborate with other parties from various countries to develop EV batteries and optimize their infrastructure.

This commitment follows the recommendations put forward by the Business 20-Task Force Energy, Sustainability, and Climate (B20-TF ESC), one of which is proposing policy recommendations to accelerate the electric vehicle (EV) ecosystem development.

"We propose several policy recommendations and policy actions, especially how to accelerate EV penetration in each country," said Nicke Widyawati, who also served as Chair of the B20-TF ESC during the 2022 G20.

In the event-themed "Indonesia Economic Development Through Downstream Industries and Inclusive Partnership", Nicke revealed the policy recommendations, including accelerating sustainable energy utilization, ensuring a fair and affordable transition, and increasing energy security.

To accelerate sustainable energy utilization, said Widyawati, Pertamina is targeting energy efficiency, with electrification being a critical success factor.

"There are demand-side energy efficiency targets, how to manage demand-side energy efficiency, and we believe electrification is a key success factor," she said.

Furthermore, Nicke also highlighted the need for financing, especially from developed countries, considering that the energy transition to renewable energy requires a significant capital investment. Therefore, investment support from developed countries is needed.

The second policy recommendation is ensuring a fair and affordable transition. In this recommendation, Nicke highlighted the need to prepare for an equitable transition, from the sectors affected by the energy transition to related sectors. She mentioned the need to ensure sustainable practices in accessing minerals to build new energy infrastructure that is a clean and low carbon, including electric vehicles.

Then the third recommendation is the need to increase energy security. "We need frameworks and regulations such as incentives to promote and accelerate the EV ecosystem," said Nicke.

B20-TF ESC is a business community that supports the G20 with impactful and actionable policy recommendations from a business perspective. It has more than 150 members, with eight co-chairs selected from several countries with different energy types.

Meanwhile, the Minister of Investment//Head of the Investment Coordinating Board (BKPM) of the Republic of Indonesia, Bahlil Lahadalia, said the EV ecosystem development in Indonesia had started by involving foreign companies and SOEs, including Pertamina.

There are at least four companies that have investment plans in Indonesia to support EV development, including LG, CATL, Foxconn, and BritishVolt.

According to Lahadalia, the government welcomes serious investors for Indonesia by providing easy licensing facilities and tax incentives.**

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