Indonesian President Prabowo Subianto has called on local governments and the Indonesian military to purchase electric vehicles, such as buses and trucks, that are manufactured locally. This appeal was made during the inauguration of a new assembly plant for commercial electric vehicles in Majalengka, Central Java, on Thursday.
Prabowo emphasized the importance of supporting national products, stating that local governments should embrace this initiative and procure electric vehicles from domestic companies. He also highlighted the necessity for the Indonesian military to buy these products to bolster the national industry.
Event Details
In his speech, Prabowo confirmed that the national industry, represented by PT VKTR Teknologi Mobilitas, is capable of producing electric buses with a production capacity of 10,000 units, with a local component ratio of 40%. The factory aims to increase this ratio to 60% within two years, reaching 80% in the subsequent phase.
The president also noted that some local governments, such as the Central Java government and the Jakarta provincial government, have already begun ordering electric buses, reflecting a growing interest in the local industry.
Background & Context
Indonesia is one of the countries striving to enhance the use of clean energy and reduce dependence on fossil fuels. In recent years, the country has witnessed significant progress in the electric vehicle industry, as the government seeks to support this sector by encouraging local investments.
Historically, Indonesia has heavily relied on importing vehicles, but with the development of the local industry, there is a shift towards enhancing domestic production, contributing to the creation of new job opportunities and stimulating the economy.
Impact & Consequences
The support of the Indonesian government for the electric vehicle industry is a strategic step towards achieving environmental sustainability. By promoting local production, carbon emissions can be reduced, and air quality in major cities can be improved.
This initiative may also open doors for further investments in the renewable energy sector, enhancing Indonesia's competitiveness in the global market.
Regional Significance
Indonesia's experience in promoting the local electric vehicle industry serves as a model for the Arab region. Arab countries can benefit from this experience in developing their local industries, especially in light of the global shift towards clean energy.
Such initiatives can foster cooperation between Arab countries and Indonesia in the fields of industry and technology, benefiting all parties involved.