Indonesia, Vietnam can co-operate to promote ASEAN electric vehicle ecosystem

The statement was made by Arsjad Rasjid, chairman of the Indonesian Chamber of Commerce and Industry (KADIN) and chairman of the ASEAN Business Advisory Council 2023 (ASEAN-BAC 2023).

Rasjid said that the Southeast Asian market has huge potential for EVs, with an expected market value of US$2.7 billion by 2027.

However, one of the most significant challenges remains the lack of infrastructure. According to the International Energy Agency, as of 2020 the entire ASEAN region only had about 9,000 public charging points, much lower than the number needed to support the expected growth of the EV market in the region moving forward.

As a means of overcoming these challenges, KADIN Indonesia is actively seeking to work alongside the Government and stakeholders in a bid to promote an electric vehicle-friendly policy, with financial incentives.

Furthermore, Indonesia is fully committed to stepping up co-operation between the EV industry of both nations.

The two sides hold great potential for EV, with Vietnam representing the third largest EV market in Southeast Asia and Indonesia being the largest auto market throughout the region.

By collaborating and sharing knowledge and resources, the two countries can exploit the full potential of the EV market in the ASEAN region.

The KADIN leader therefore emphasized that the country is in the process of accelerating the production of electric vehicles, while suggesting that both nations should work together as a means of creating a synergy in the production of batteries and spare parts

Indonesia also has many areas that it can invite the Vietnamese side to co-operate in, he said, outlining his belief that there are opportunities to promote the value of synergy within the ASEAN framework to make the bloc stronger.

Apart from the EV sector, Rasjid said that the bilateral agreement between the two countries also covers co-operation in developing a green economy with a lot of potential.

It is therefore important that the Indonesian side hears the suggestions of Vietnamese businesses to boost linkages with Indonesia, as well as what areas the country is keen for Indonesia to invest in.

With the combined GDP of the two countries accounting for more than 60% of the total GDP of ASEAN, Indonesia is keen to work with Vietnamese partners in a bid to boost the development of priority areas as identified by the administration of Indonesian President Joko Widodo in terms of infrastructure development, renewable energy, high technology, and digital transformation thereby making ASEAN the focal point of global growth, he added.