Indonesia Wants to Build EVs, Researcher: We Need to Learn from Vietnam

KatadataOTO – The electric car manufacturer from Vietnam, VinFast, is one of several newcomers enlivening the Indonesian automotive market.

It has become a highlight because the neighboring country is said to be capable of producing and exporting its own line of electric cars.

Meanwhile, Indonesia, with its more abundant battery raw material resources, has not yet done the same.

Researchers believe there are several factors that have allowed Vietnam to be ahead in the production and export of EVs (Electric Vehicles).

Photo : KatadataOTO

“First, when you do something, you must focus until it's finished; complete the upstream part first. Of course, all of this depends on government policy,” said Prof. Dr. rer. nat. Evvy Kartini, Founder of the National Battery Research Institute in Jakarta some time ago.

According to her, it is important for the government to continue the EV-related regulations from the previous administration. 

Policy changes that are too rapid and inconsistent can create difficulties for various parties, especially investors.

Prof. Evvy highlighted that in Vietnam, the licensing and regulations related to electric cars are simpler and do not complicate matters for the parties involved.

“Here, there are too many regulations issued by each ministry. So, as I mentioned earlier about mining, upstream, the ministries are ESDM and BKPM. But when it comes to building a battery factory, it's the Ministry of Industry, and the permit is different again,” said Prof. Evvy.

The same goes for battery standardization and recycling, where regulations are issued by the KLH or the Ministry of Environment and Forestry.

For this reason, she suggests the government have a single coordinating ministry that can manage EV-related matters from upstream to downstream.

Photo : PT Pindad

“Because if our licensing process is difficult, with too many places to go and so on, investors will back out,” she asserted.

She also emphasized the importance of hiring a competent workforce in their respective fields. This can significantly advance the company.

“In Vietnam, they hire the best people (workforce). For example, in the battery sector, they hired a Korean director; they built the battery factory from small to large,” said Prof. Evvy.