A transformative shift toward electrifying the transportation sector in Indonesia has prompted the growth of the electric vehicle (EV) ecosystem, which provides promising business opportunities for both local and overseas investors. According to a report released by McKinsey, Asia Pacific is responsible for 50 percent of annual global greenhouse gas (GHG) emissions and represents the biggest opportunities, with a potential US$4 – 5 trillion by 2030 across 11 sectors. Of the 11 sectors, transportation ranks top with an estimated $1.1 trillion, followed by power with $800 billion and construction with $570 billion. Alongside global sustainability initiatives, Indonesia’s growing trend in switching to green transportation is also affirmed by the government’s commitment to achieving its net-zero emissions (NZE) target. Indonesia's NZE Road Map for the Energy Sector 2060 mandates that the transportation sector emission levels in 2060 should not exceed 52 million tonnes of carbon dioxide, according to the Energy and Mineral Resources ministry.In terms of EV infrastructure, Indonesia has also made headway, with charging stations reaching 1,380 units as of April 2024, and battery-swapping stations totalling 2,182 units as of the same period. The increase in EV adoption, supported by Indonesia's vast natural resources and the government’s ambitious target for EV production, presents a promising opportunity for the automotive industry.In the context of downstream industry development related to the EV sector, HSBC has been supporting FDI to Indonesia. HSBC has also been supporting Indonesia’s state owned enterprises in a few landmark deals. With regard to supporting growth of the EV industry, HSBC has helped local and two foreign companies to construct greenfield EV lithium-ion battery manufacturing facilities in Indonesia. Furthermore, HSBC has also provided green loan to support Indonesia’s leading transportation company to expand their electric vehicle fleet, as well as supporting a multifinance company to provide financing for EV cars. Veetil concludes, “South and Southeast Asia, with an abundance of the natural resources required in the transition, as well as the expertise in making batteries and building EVs, stands to benefit from the electrification of transport. We expect Indonesia to play a major role in the EV ecosystem and capture the EV and battery value-chain opportunity.” (ICE GIACARTA)

Fonte notizia: The Jakarta Post, 8 July 2024