Bisnis, Jakarta – Energy economics observer from Gadjah Mada University (UGM), Fahmy Radhi, said the development of an industrial downstream ecosystem takes at least 10 to 15 years. Within that time period, Indonesia could process nickel ore to produce electric vehicles or EVs.

"As long as it's consistent," Fahmy told Tempo on Friday, June 30.

Besides smelters, processing nickel ores to produce electric vehicles would need manufacturers that process downstream products into the main battery material. And then batteries for EVs.

"If the roadmap is clear, it can be pursued. And once again, it needs consistency," Fahmy asserted.

Therefore, the government must remain strong in facing any external obstacle. Such as the recent IMF recommendation for Indonesia to consider the gradual revocation of the export ban for nickel ores, bauxite, and other commodities, or the previous lawsuit against the nickel ore export ban at the World Trade Organization (WTO).

In addition to the state's consistency in boosting the downstream, the government must also not be discriminative. Fahmy, therefore, criticized the relaxation or the granting of PT Freeport's copper concentrate export permit. He considered that this step could shake up the downstream process.

"If the government gives relaxation to Freeport, businesses of nickel, bauxite, and other commodities can also demand the same," said Fahmy, adding that it may stop the downstream process.

Fahmy argues that the downstream of resources is important because it provides added value to the Indonesian economy. In fact, he said, downstream would be a determining factor for Indonesia to move up from a developing country to a developed and modern country.

"So, the economic growth will be supported by the manufacturing sector. It will no longer be supported by the consumption sector," he remarked.

Source: https://en.tempo.co/read/1743430/indonesia-to-be-able-to-produce-its-own-ev-in-15-years-expert-say