The Power Generation, Renewable Energy & Electrical Equipment ​Exhibitions

28 - 31 AUGUST 2024

Jakarta International Expo, Jakarta - Indonesia

Indonesia Needs to Incentivize EV Battery Recycling Industry: Expert

Indonesia needs to introduce incentives to the recycling industry of electric vehicle (EV) batteries, according to an expert. 

Bhima Yudhistira, the executive director of the economic think-tank Celios, said Tuesday that Indonesia could run out of nickel — a mainstay ingredient in EV battery production — if it continues to mine the metal. 

“We should provide incentives to the EV battery recycling industry. … There are warnings that our nickel supply is not as much as we think. Mining associations have warned that the reserves would only last for 7-15 years,” Bhima said in Jakarta.

Bhima said the Indonesian government should provide the decades-long tax holidays that nickel smelters enjoyed. The Investment Affairs Coordinating Ministry revealed last August that nickel smelters with an investment of at least Rp 30 trillion (about $1.9 billion) were eligible for a 20-year holiday for its corporate income tax. Smelters with investments below Rp 30 trillion could only get a tax holiday that ranges between 5 and 15 years.

“The government can also try to help the recycled batteries get absorbed by the domestic automotive industry. Another possible incentive is a 0 percent export duty on recycled batteries,” Bhima said.

Indonesia is home to the world’s largest reserves of nickel.

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