Indonesia and Vietnam Can Cooperate to Promote ASEAN Electric Vehicle Ecosystem

This is the sharing of Mr. Arsjad Rasjid - Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), and also Chairman of the ASEAN Business Advisory Council 2023 (ASEAN-BAC 2023).

Mr. Arsjad Rasjid said that the Southeast Asian market has great potential for electric vehicles, with a market value expected to reach 2.7 billion USD by 2027. However, one of the biggest challenges is the lack of electric vehicle infrastructure. According to the International Energy Agency, as of 2020, the entire ASEAN region only had about 9,000 public charging points, far below the number needed to support the expected growth of the electric vehicle market in the region.

In Vietnam, VinFast is also expanding and developing electric car products.

To overcome these challenges, KADIN Indonesia is actively seeking to collaborate with the government and stakeholders to promote EV-friendly policies, with financial incentives. In addition, Indonesia is committed to promoting cooperation between the electric vehicle (EV) industry in Indonesia and Vietnam. Both countries have great potential for EVs, with Vietnam being the third largest EV market in Southeast Asia and Indonesia being the largest automobile market in the region. By collaborating and sharing knowledge and resources, the two countries can tap the full potential of the EV market in the ASEAN region.

Mr. Arsjad Rasjid emphasized: "Vietnam is promoting the production of electric vehicles. Why don't we cooperate together to create a synergy in the production of batteries, components... Indonesia also has many fields that can invite Vietnam to cooperate. I believe that there is an opportunity to promote the value of synergy within the ASEAN framework to make the bloc stronger."

In addition to the electric vehicle sector, Mr. Arsjad Rasjid said that the bilateral agreement between the two countries includes cooperation in developing the green economy or foodstuffs... with great potential. It is important that the Indonesian side also wants to listen to what Vietnamese businesses propose to promote cooperation with Indonesia as well as what areas Vietnam wants Indonesia to invest in.

With the combined GDP of Indonesia and Vietnam accounting for more than 60% of ASEAN's total GDP, Indonesia wishes to cooperate with Vietnam to promote the development of priority areas identified by the administration of Indonesian President Joko Widodo such as infrastructure development, renewable energy, high technology and digital transformation, making ASEAN the center of global growth./.