Indonesia's chairmanship in ASEAN continues to generate many agreements and potential cooperation in various sectors for countries in the ASEAN region. It can be seen in May 2023 when the Association of Southeast Asian Nations Summit took place, or the 42nd ASEAN Summit in Labuan Bajo, East Nusa Tenggara, which resulted in many new regional agreements.
During the meeting of the leaders of ASEAN countries, there were several important points of agreement to strengthen the economies of ASEAN countries, including cooperation and collaboration in developing the electric vehicle ecosystem in the ASEAN region.
As we all know, the development of electric vehicles in the world is very rapid. It can be seen from the trend of increasing use of electric vehicles in various countries, such as in Europe and China.
Based on research by Statista, the use of electric vehicles has increased significantly in the world since 2016. The increase has occurred in the type of plug-in hybrid electric cars to electric cars with batteries. It is noted that in 2021, the use of electric cars around the world has reached 16.4 million units.
President Joko Widodo is also very optimistic that ASEAN can develop electric vehicles on the global stage. President Joko Widodo revealed that ASEAN had great potential for the development of electric vehicles, with an estimated market of US$ 2.7 billion in 2027.
It is not mere optimism since, in terms of natural resources, Indonesia has 23% of the world's nickel reserves. As we know, nickel is the primary raw material in manufacturing electric vehicle batteries. It means Indonesia has a great opportunity to develop electric vehicles.
Another interesting fact is that currently, Indonesia is developing an electric vehicle industry ecosystem from upstream to downstream, with a production target of 600 thousand units of electric cars and 2.45 million electric motorcycles per year in 2030. If the target is achieved, it can help reduce carbon emissions by up to 3.8 million tons.
Apart from the economic aspect, the development of electric vehicles also has a big role in environmental sustainability, starting from reducing greenhouse gas emissions, accelerating the energy transition, decarbonizing the land transportation sector in the region, achieving zero-emission targets, to increasing energy security in the ASEAN region.
Cooperation Agreement
The 42nd ASEAN Summit in Labuan Bajo also succeeded in making a cooperation agreement with countries in the ASEAN region. The cooperation and collaboration in developing the electric vehicle ecosystem includes: improving infrastructure and charging; and creating a conducive business and investment climate to attract investment, including public-private partnerships.
Then, it optimizes the production and use of sustainable materials and resources to achieve higher value creation from the electric vehicle supply chain in the region. Furthermore, it promotes using renewable energy in the mobility sector; transition from fossil-fuel engine cars to zero-emission vehicles, including electric vehicles, in ASEAN countries.
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