Indonesia and China Strengthen Cooperation in Electric Vehicle and Petrochemical Sectors
Jakarta, The Gulf Observer: Industry Minister Agus Gumiwang Kartasasmita has discussed avenues for cooperation in the development of electric vehicles (EVs) and the petrochemical sectors with China, recognizing the significant potential benefits for both nations.
In a statement issued on Thursday, Minister Kartasasmita detailed his meeting with Minister of Industry and Information Technology of China, Jin Zhuanglong, during a working visit to Beijing on June 12-13, 2024.
Minister Kartasasmita highlighted the vast opportunities within Indonesia’s EV industry, aligned with the government’s 2019 policy to foster advanced, environmentally friendly, low-emission technology, prioritizing battery electric vehicles (BEV). He noted that four out of six BEV industries operating in Indonesia are from China, reflecting strong confidence in the Indonesian market and reinforcing bilateral economic relations.
“Out of six BEV industries operating in Indonesia, four are BEV industries from China. This not only showed the trust of Chinese industries in the Indonesian market but also bolstered the economic relations between the two countries,” he remarked.
Kartasasmita emphasized Indonesia’s strategic position as a production and export hub for EVs, particularly right-hand drive vehicles, which are in demand in 54 countries. He urged China’s EV industries to enhance their contribution to Indonesia’s export value through BEVs and encouraged the use of Nickel Manganese Cobalt (NMC) battery cells in their manufacturing processes.
Regarding the petrochemical sector, Minister Kartasasmita identified significant opportunities for new investment, particularly for experienced investors. Despite the national petrochemical industry’s current capacity of over 14 million tons per year, it still falls short of meeting domestic demand.
“We know that China is one of the global petrochemical players that has succeeded in optimizing various oil and gas and coal resources into superior chemical products,” he remarked. Kartasasmita invited Chinese business leaders to expand their operations in Indonesia, citing the profitable and wide-open investment landscape.
The discussions between the two ministers underscore a commitment to enhancing industrial cooperation, leveraging each country’s strengths to foster mutual economic growth.
