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Home Industry

Pertamina to develop EV battery ecosystem by utilizing Indonesia’s nickel reserves

Sinta by Sinta
April 17, 2023
in Industry, News
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Pertamina

Illustration of Pertamina fuel station. Photo by Aldrin Rachman Pradana/Unsplash

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Pertamina also possesses infrastructure that can be optimized for electric vehicle (EV) penetration as well as segmentation data on characteristics, mobility, and purchasing power.

Heaptalk, Jakarta — Indonesian state-owned oil and natural gas corporation, Pertamina, seeks to play a role in the development of the electric vehicle battery ecosystem in Indonesia by optimizing domestic resources.

“We are confident we can produce batteries and increase EV penetration with nickel reserves in Indonesia,” said President Director and CEO of Pertamina Nicke Widyawati at the Indonesia Pavilion, World Economic Forum, in Davos, Switzerland.

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According to Nicke, Pertamina possesses infrastructure that can be optimized for electric vehicle penetration. The company has segmentation data on characteristics, mobility, and purchasing power.

In addition, Pertamina also owns more than 7,400 gas stations, 6,100 Pertashops, and 63,000 LPG outlets. To achieve its goal, the SOE will embrace its infrastructure and boost collaboration with other parties from various countries.

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

B20-TF ESC is a business community supporting the G20 with policy recommendations that have an impact and can be followed up from the business aspect. The community has more than 150 members, with eight joint chairmen elected from several countries with different types of energy.

“We propose several policy recommendations and policy actions, primarily 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.

Accelerating the use of sustainable energy

Further, Nicke revealed policy recommendations to accelerate the penetration of EVs, spanning accelerating the use of sustainable energy, ensuring fair and affordable transitions, and increasing energy security.

To accelerate the use of sustainable energy, Pertamina is targeting energy efficiency, with electrification being a critical success factor. She said, “There are demand-side energy efficiency targets, how to manage demand-side energy efficiency, and we believe electrification is a key success factor.”

Nicke also emphasized the need for financing, particularly from developed countries, considering that the energy transition to renewable energy requires a very large capital investment.

A fair transition for those affected by the energy transition also needs to be well-prepared. Nicke mentioned the necessity to ensure sustainable practices in mineral access to build new energy infrastructure that is clean and low carbon, including electric vehicles. “We need frameworks and regulations including incentives to promote and accelerate the EV ecosystem,” said Nicke.

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

Four companies have committed to putting an investment plan in Indonesia to support the development of EVs, including LG, CATL, Foxconn, and Britishvolt. According to Lahadalia, the government welcomed those investors by providing ease of licensing facilities and tax incentives.

Tags: battery electric vehiclecatl nickel indonesiaelectric vehicle batteryelectric vehicle battery indonesiaelectric vehicle business opportunitieselectric vehicle ecosystemelectric vehicle indonesiaelectric vehicle market in indonesiaEV ecosystem indonesianickel company indonesianickel indonesianickel indonesia batterypertaminasmelter nickel indonesia

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