Taipei – Indonesian President Prabowo Subianto has reiterated his ambition to produce electric vehicles domestically, as Indonesia is known as one of the world's largest nickel suppliers. Minister of Investment and Dowenstream Industry/Chairman of Investment Coordinating Board (BKPM) Rosan Roeslani said it was an attainable objective, considering Indonesia's abundant nickel resources.

Since January 1, 2020, under President Joko Widodo’s administration, the Indonesian government has banned nickel ore exports as part of its downstream policy to pursue the "Golden Indonesia 2045" vision. Prabowo and his vice president, Gibran Rakabuming Raka, have called for the continuation of the policy.

“[We were] talking about nickel potentials and whatsoever. The battery for electric vehicles already exists, but the electric car itself does not yet. Meanwhile, we are fully committed to achieving net zero emissions by 2060, or even earlier if possible, as stated by the President,” Rosan said after a limited coordination meeting in February.

According to the Ministry of Energy and Mineral Resources, Indonesia’s nickel resources totaled about 18.55 billion tons of ore in 2023, with proven reserves reaching 5.32 billion tons. Bauxite resources stood at around 7.48 billion tons, with reserves totaling 2.78 billion tons. Indonesia holds the world’s largest nickel reserves, accounting for 23 percent of total global reserves.

Indonesia’s electric vehicle production has recently reached about 1.2 million units annually, still far below the government's target of 2.5 million EVs per year by 2030. To support the sector, the government is considering relying on the “Maung,” a national car produced by state-owned PT Pindad, as part of its EV ecosystem development.

“The point is, it would be ironic if we couldn’t play a bigger role. So, we’ve been asked to conduct feasibility studies because we already have the Maung," Rosan said after a closed-door meeting at the Presidential Palace. "There may be further developments, and we will discuss the next assessments," he added.

Economic scholar Fahmy Radhi from Gadjah Mada University also stressed the importance of foreign investment in strengthening Indonesia’s electric vehicle ecosystem, including requirements for investors to build factories and ensure significant technology transfer.

"Indonesia could become an electric vehicle producer for both domestic and global markets within 15 years with foreign investment support. If that happens, the country could achieve developed status, with economic growth driven by the manufacturing industry rather than by consumption, which remains highly vulnerable," Radhi told VOA.

Apart from nickel, which serves as the core component of electric vehicle batteries, semiconductors play a critical role in EVs by powering systems ranging from driver assistance and battery management to onboard charging, all while operating in safety-sensitive environments with higher durability standards than consumer electronics. As EV adoption and autonomous driving technology advance, the automotive semiconductor market is projected to grow from just under USD 70 billion in 2022 to USD 135 billion by 2028, highlighting their increasing importance.

Given this context, Taiwan could potentially become a key partner for Indonesia in establishing a robust electric vehicle ecosystem. Taiwan produces over 60 percent of the world's semiconductors and approximately 92 percent of the most advanced chips, primarily through Taiwan Semiconductor Manufacturing Company (TSMC), according to The Economist. In the long term, closer collaboration with Taiwan could also help Indonesia diversify its economic partnerships and strengthen its technological independence.

Therefore, the Indonesian Economic and Trade Office (IETO) in Taipei said it would warmly welcome and facilitate Taiwanese companies interested in investing to help build the country's electric vehicle ecosystem.

“With the MoU on electric vehicle ecosystem development and battery investment already in place, we look forward to seeing Foxconn and Gogoro turn their vision into reality in Indonesia,” said Eko Wijanarko, Director of the Investment Department at IETO Taipei.

He added that such investment could bring new opportunities, create jobs, and support the growth of sustainable transportation in Indonesia, contributing to a greener and more prosperous future.