Indonesia will be able to cut domestic prices of electric vehicles by up to 30% by manufacturing its own EV batteries, said Minister of Industry Agus Gumiwang Kartasasmita.
In his recent remarks in Jakarta quoted by national news agency Antara, the minister said he believes the prices will drop by 20-30%.
He noted that EV batteries had been quite costly, with their prices equivalent to 40-50% of the vehicle cost.
According to the minister, in addition to decreasing the prices of EVs, domestically manufactured EV batteries would lead to an increase in the value of the domestic component level of such vehicles.
He expressed optimism that they would also attract more businesses to invest in the country.
Earlier, Kartasasmita revealed that French and Vietnamese automotive companies, Renault and VinFast, have voiced their readiness to pour capital into Indonesia. He said that the ministry has been in close coordination with them and that their investments are expected to support the development of an EV ecosystem in the nation