MIND ID Collaborates with Investors to Plan Development of Electric Vehicles in Indonesia

Downstreaming is the key word to promote the value of a product. It is not surprising, therefore, that the President and Government continue to drive each industry producing raw materials in Indonesia, to be committed in considering the downstreaming of its derivative products. The downstreaming of products is believed to be able to strengthen industry structure, provide job opportunities and business prospects in Indonesia.

This also applies to MIND ID or Mining Industry Indonesia, the Holding State-Owned Enterprise for the Mining Industry, with members PT Antam Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero), PT Timah Tbk, to also be committed to make the Government’s Downstreaming Program a reality.

MIND ID’s President Director, Hendi Prio Santoso, said that “MIND ID has three mandates from the Government, namely, manage strategic reserves and resources, downstreaming and becoming the market leader, through the optimizing of mineral commodities and business expansion.”

MIND ID as the Holding State-Owned Enterprise of the Mining Industry continually commits to drive the added value of each mining product, this time, in the aluminium and nickel industry. Aluminium and nickel are key components in the development of the electric vehicle industry.

The electric vehicle industry is presently one of the solutions to reduce global emissions which continue to accelerate. The transportation sector is one of the contributors to the substantially high emissions. It is a fact that the electric vehicle is an environmentally-friendly transportation alternative, as these vehicles do not produce emissions which can pollute the air.

This commitment has been unanimously declared as one of the three main pillars of the G20 Presidency in Indonesia, namely, (i) Global Health Architecture; (ii) Digital Transformation; (iii) Equitable Energy Transition.

Energy transition is a crucial issue and has the highest priority for implementation, aiming at reducing greenhouse gas emission and limiting temperature rise to under 1.5 degrees Celsius in 2050, in accordance to the Paris Agreement. Strengthening equitable energy transition needs sustainable finance and innovation.

“Accelerating the presence of electric vehicles in Indonesia is in line with MIND ID’s sustainability pathway and also aligned to the Sustainable Development Goals, particularly the climate action pillar,” Hendi added.

Through the G20 Forum, Indonesia has the opportunity to drive efforts and show the world its full support towards global energy transition.  The Ministry of Energy and Mineral Resources, in the G20 seminar series, conveyed Indonesia’s energy transition road map to achieve carbon neutral in 2060 or sooner.

Therefore, G20 countries shoulder the big responsibility and strategic role in driving the use of clean energy. This means focusing on energy security, access and efficiency, as well as transitioning to low carbon energy system, including investment and innovation in cleaner and more efficient technology.

The downstreaming and energy transition program has become the priority of the Government to be immediately realized. This seriousness is shown by MIND ID with the visit to the UK in May 2022 and the signing of the Memorandum of Understanding with Arrival Ltd as partner to seek potential supply solutions, including batteries and aluminium, as well as discuss the design and development of electric vehicles.  This initiative is part of MIND ID’s efforts in exploring the development of commercial micro electric battery factory in Indonesia and Southeast Asia.

In the context of the strategic cooperation spirit contained in the Memorandum of Understanding, MIND ID has appointed PT Industri Baterai Indonesia (IBC) to implement the Memorandum of Understanding, including the joint feasibility study with Arrival Ltd. covering Market Study and Project Feasibility to expand the electric vehicle business, aluminium supply and battery supply projects for the EV business expansion in Southeast Asia.

The appointment of IBC to implement the Joint Development Agreement was signed on 30 September 2022 at the time of MIND ID’s visit, with MIND ID represented by President Director Hendi Prio Santoso, and Institutional Relations Director Dany Amrul Ichdan, together with officials from the Ministry of State-Owned Enterprises.

Minister of State-Owned Enterprises, Erick Thohir, said that, “This positive, tangible step needs support from the Government. Energy transition, which is the aim of the G20 Presidency, as well as support the downstreaming program.  MIND ID as the Holding State-Owned Enterprise for the Mining Industry is the key in managing mineral and coal resources to the utmost, in order to provide the full value for Indonesia.”

MIND ID and Inalum will be appointed as Global Supply Chain for Aluminium and MIND ID, together with IBC, as Global Supply Chain for Battery, including the joint feasibility study for EV battery technology. MIND ID and ARRIVAL will jointly develop a Micro Factory for Commercial EVs in Indonesia and Southeast Asia, targeting the commercial EV markets of ‘developing countries’ and which will be headquartered in Jakarta, Indonesia.

MIND ID’s Director of Institutional Relations, Dany Amrul Ichdan, said that “We shall conduct a total assessment and collaborate with related Ministries or Institutions, that will enable us to provide investment certainty, raw material supply, fiscal incentive and other investment facilities so that the investment package offered will be attractive to strategic partners and provide added value to MIND ID and prospective investor, in this case ARRIVAL.”

“Through this cooperation, MIND ID takes part in accelerating the development of the EV ecosystem in Indonesia, which will become the forerunner of Indonesia’s future electric vehicles. MIND ID’s commitment in terms of the efforts to strengthen the downstreaming of aluminium and nickel products, one of the outputs of which would be the public transportation with this EV technology, is the manifestation of President Jokowi’s ambition for Indonesia’s sustainable economic growth,” Dany concluded.