Energy Minister Talks of ASEAN Becoming Global EV Production Hub

TEMPO.CO, Jakarta – Indonesian Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif stressed the importance of ASEAN becoming an industrial hub for the production of global electric vehicles to support the goal of carbon neutrality by 2050-q2060.

“We must work hard to drive the electric vehicle industry and make ASEAN a global manufacturing hub,” Arifin said virtually at the East Asia Energy Forum in Nusa Dua, Bali, on Monday, August 21, 2023.

According to the International Energy Agency (IEA), ASEAN’s energy demand was expected to grow by three percent by 2030, with three-quarters of this demand coming from fossil fuels.

Consequently, ASEAN’s carbon emissions are expected to increase by up to 35 percent from 2020, according to the fifth edition of the IEA Outlook.

For this reason, Arifin mentioned that at the 42nd ASEAN Summit 2023 in Labuan Bajo, NTT, Southeast Asian countries agreed on electric vehicles as an effort to reduce greenhouse gas emissions and decarbonize the land transport sector.

Therefore, he emphasized that technology is an important key in the energy transition in order to achieve carbon neutrality. Other efforts are also needed, such as the certification of buildings that implement green and energy-saving measures, energy efficiency in the industrial sector through electronification, and the use of environmentally friendly fuels including biofuels, gas, and hydrogen for heavy-duty vehicles.

The Ministry of Energy and Mineral Resources noted that by 2022, Indonesia managed to reduce greenhouse gas (GHG) emissions by 91.5 million tons of CO2 equivalent, exceeding the target of 91 million tons of CO2 equivalent. The energy efficiency contributed 22 percent or equal to 20.5 million tons of CO2 equivalent.

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In 2023, Indonesia targeted to reduce GHG emissions by 116 million tons of CO2 equivalent and achieved 142 million tons of CO2 equivalent in 2024.


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