Indonesia as a Greener Battery Producer for Electric Vehicles

By Monika Merdekawati, Jeihan Kartika Hapsari, and Dr Zulfikar Yurnaidi

14 August 2021

The transportation sector is one of the most significant contributors to global greenhouse gas (GHG) emissions. This sector remains the biggest emitter and air polluter in Southeast Asia, contributing to 25 percent of total GHG emissions. Meanwhile, following the Paris Agreement in 2015, ASEAN member states have committed to reducing global GHG emissions as soon as possible and reaching climate neutrality by mid-century. To do so, the International Energy Agency (IEA) recommends that at least 60 percent of the global road fleet run on electric vehicles (EV) by 2030. As of 2019, one-fifth of the world’s road vehicles are in ASEAN, according to our estimate.

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