Indonesia's ambitious move to manufacture its own electric vehicle (EV) batteries could significantly impact the affordability of eco-friendly cars. According to Minister of Industry Agus Gumiwang Kartasasmita, the domestic production of EV batteries is expected to reduce the prices of electric vehicles by up to 30 percent.

Here are the key points from the news:

1. Costly EV Batteries: Historically, EV batteries have been quite expensive, accounting for 40-50 percent of the total cost of electric cars.

2. Domestic Battery Production: To directly address this cost challenge, Indonesia aims to manufacture its own EV batteries within its borders.

3. Price Reduction: Minister Kartasasmita believes that this initiative will lead to a 20-30 percent reduction in the prices of electric cars.

4. Boosting Domestic Industry: In addition to cost savings, domestically produced EV batteries will contribute to an increase in the value of the domestic component level (TKDN) of EVs.

5. Attracting Investments: The minister is optimistic that Indonesia-made EV batteries will attract more business actors to invest in the country.

6. Renault and VinFast: French and Vietnamese automotive companies, Renault and VinFast, have expressed readiness to invest in Indonesia, supporting the development of an EV ecosystem.

7. Production Goals: Indonesia's domestic automotive industry aims to produce nine million electric motorbikes and 600 thousand electric cars and buses.

By fostering local battery production, Indonesia aims to enhance its competitiveness in the global EV market and promote sustainable transportation options. 🚗🔋