Although there have not been clear signs that Foxconn has decided to build EVs in Indonesia, the determination of the country to build a sound ecosystem for e-mobility is fully demonstrated by a recent visit by a high-level official to Taipei seeking a partnership with Foxconn.
Jakarta Globe reports that Indonesia's investment minister and head of the investment coordinating board (BKPM), Bahlil Lahadalia traveled to Taipei and had a meeting with the chairman of Foxconn, Young Liu, and Horace Luke, founder and CEO of Gogoro, on October 22nd. The agenda was on building a comprehensive electric battery and electric vehicle industry in Indonesia for two-wheel and four-wheel vehicles. However, Nikkei Asia confirmed that "nothing has been decided" by both parties.
Indonesia has been striving hard in tackling air pollution and climate challenges. According to the Climate Transparency Report 2021, transportation is the key contributor to calamities -- approximately 28% of Indonesia's greenhouse gas (GHG). Although Indonesia has pledged its commitment to lower the figure down as part of the Paris Agreement 2015, however, its progression is slow due to the biofuel adoption at the national level.
Having set its eyes on transportation electrification, the Indonesian government seeks to become an EV production hub as well as a key player in the global supply chain of lithium-ion batteries in line with the EV industry. Currently, the Indonesian government accelerates the uptake of EVs by providing tax relaxations to support EV investment, launching their roadmap for EV infrastructure, regulating electricity price, to name a few.
Since Foxconn has already made commitments elsewhere, Indonesia would have to provide incentives to compete with Asian countries such as India. Indonesia does have its attractive features to become an EV hub. Brodie Gunning, CEO of Canadian startup Electrum Charging Solution, told DIGITIMES in a recent interview that Indonesia has everything needed for developing the EV industry in one place -- raw materials dug out of the ground, made into a battery, and put into the car in one process, and it is also an important market with significant progress in energy technologies.
Hyundai Motor and LG Energy Solution have officially started to construct their EV battery plant in Karawang, near Jakarta. And Tesla's talk with the Indonesian government for manufacturing its own EV battery is still in progress, according to Jakarta Post, quoting coordinating investment and maritime affairs ministry investment and mining deputy Septian Hario Seto.
