Electric dreams: Indonesia's reckless bet on EVs

电气幻梦:印度尼西亚对电动汽车的冒险押注

Money Talks from The Economist

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2025-02-21

42 分钟
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Indonesia has more nickel than it knows what to do with. The metal is a key component in some electric vehicle batteries—and almost half of the world's supply is produced in the sprawling island nation. But that's not enough for Prabowo Subianto, the new president, who wants to do more than just mine the mineral. He wants to use it to build a top-to-bottom electric-car supply chain. But just because the country has a near monopoly on nickel, should it really make EVs? Hosts: Ethan Wu and Mike Bird. Guests: Septian Hario Seto, Indonesian former deputy minister of investment and mining coordination; and Putra Adhiguna, managing director at the Energy Shift Institute, a think tank focusing on Asia's energy transition. Transcripts of our podcasts are available via economist.com/podcasts. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+.
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  • For many countries, a domestic car industry is more than just an employer.

  • It's a source of pride.

  • In the late 90s, Indonesia didn't have a national car to rally around.

  • So Tommy Suharto, the youngest son of the then president and dictator,

  • set out to change that.

  • He launched the country's first car company.

  • Timor Putra Nasional in 1996.

  • The TV commercial for the first Timor car claimed it was the pioneer of Indonesia's future.

  • But there was a snag.

  • The country couldn't actually make the cars.

  • In its first year, Indonesia's national car company,

  • imported 40,000 sedans from the South Korean carmaker Kia,

  • and simply stuck a new badge on the front,

  • a large letter T. The company was also exempt from the taxes and tariffs imposed on other carmakers,

  • making a comparable Toyota nearly twice as expensive for Indonesian buyers.

  • It didn't take long for the other carmakers in Japan, the US,

  • and the EU to complain to the WTO, which eventually ruled against Indonesia.

  • And then… May the 14th, 1998.

  • History will remember this as the day that Jakarta,

  • one of Asia's great cities, was sacked by its own people.