The Indonesian Investment Authority (INA) has partnered with Chinese battery maker CATL and financial institution CMB International to launch a $2 billion+ electric vehicle fund.
With its new “Green Fund”, INA is hoping to capitalise on investment opportunities presented by Indonesia’s position as home to one-quarter of the world’s nickel reserves, with the metal playing a key role in the production of batteries.
With world leaders gathering for COP27 last week, all eyes are on sustainability targets. The global electric vehicle market is one sector set to grow in momentum, as countries look to phase out traditional combustion cars for greener alternatives.
The Green Fund is Indonesia’s latest move in its commitment to sustainability and reaching carbon neutrality by 2060.
According to the INA, developments in the EV market can be expected to present a “trillion-dollar” global opportunity in the entire EV value chain. To this end, Indonesia is strategically positioned to become a “meaningful player” in the global EV supply chain.
“This MoU is part of our journey and commitment to supporting Indonesia’s sustainability and commitment to net zero emission,” said INA CEO Ridha Wirakusumah. “Electrification is an attractive solution for conventional energy, helping to reduce environmental impact whilst also tapping into a potential growth market.”
Elsewhere, manufacturing giants such as Nissan and Honda have upped their investment in EV vehicles, injecting $13bn and £14bn respectively.
Indian firm Ola Electric also announced it will be making its debut into the market in 2024 with the production of its first electric vehicle fleet, it currently only produces e-scooters.
