Reshaping Indonesia’s Policy on Electric Vehicles: From Nickel to Electric Cars? A Case Study of Vietnam’s Vinfast Electric Cars

Abstract

Indonesia has ratified the Paris Agreement to support its goal of achieving net zero emissions (NZE) by 2060. As the automotive industry shifts from fossil fuels to electric vehicles (EV), many countries are setting new strategies in their transportation sector. To face this challenge, Indonesia has put an export ban on nickel ore effective from 2020. This strategy was intended to initiate the domestic EV industry and encourage foreign investors to drive their manufacturing activities into Indonesia. However, Indonesia’s technology has yet established for producing EVs and distributing them to the global market. This study examines Indonesia’s EV policy within the broader context of its commitment to the Paris Agreement and its goal of achieving NZE by 2060. As one of the world’s largest producers of nickel, a key component in EV batteries, Indonesia is leveraging its natural resources to attract foreign investment and develop a domestic EV industry. Using a qualitative approach through literature review, this study explores how Indonesia’s policy aligns with its environmental goals and ambition to become a global hub for EV production, drawing comparison with Vietnam’s successful development of Vinfast, an emerging global player in the EV market. The analysis highlights the strategic importance of EVs in reducing carbon emissions and transforming the automotive industry, as well as the role of international cooperation in achieving these objectives. This research concludes by assessing the challenges and opportunities for Indonesia in positioning itself in the EV market, while contributing to global efforts to combat climate change.