As electric vehicle (EV) adoption increases in Indonesia, the issue of battery waste management has become a significant concern. The absence of adequate recycling infrastructure poses a major challenge to ensuring the long-term sustainability of the electric vehicle ecosystem.

According to Ary Sudjianto, deputy for Climate Change Control and Carbon Economic Value Management at the Ministry of Environment/BPLH, this challenge must be addressed urgently.

"In the next three to four years, a substantial number of used batteries from EVs will likely emerge. We aim to recycle these batteries," stated Ary Sudjianto at the JAMA Oil Lube Seminar on 10th March 2025.

Ary highlighted that, given the government's ambitious target for electric vehicles by 2030, the volume of battery waste is expected to increase significantly.

To mitigate the environmental impact, the establishment of an effective battery waste management system is essential. While conventional battery processing already involves established infrastructure across various industries, similar measures have yet to be implemented for electric vehicle batteries, despite the continued growth of the domestic EV market.

"We will discuss policy measures and identify the best solutions for handling EV batteries. This issue is on a much larger scale compared to conventional battery waste," Ary added.

As part of its efforts to accelerate electrification, the government allocated US$ 455 million last year to subsidise the sale of electric motorcycles, including 800 new units and 200 units converted from conventional engines. Additionally, a 10% tax incentive has been reintroduced for electric cars, while hybrid vehicles receive a smaller tariff discount of three percent.

The government is also advancing the development of charging infrastructure. This includes offering special rates for upgrading electrical systems in EV owners' homes and providing discounts on overnight charging. Beyond electrification, the government has allocated 11.8 million tons of biodiesel to support the launch of a 35% palm oil blend in biodiesel (B35).

"This programme can reduce greenhouse gas emissions by approximately 34.9 million tons of CO₂," stated Dadan Kusdiana, Secretary General of the Ministry of Energy and Mineral Resources, on a separate occasion.

Through these initiatives, the government aims to balance the rapid adoption of electric vehicles with the implementation of sustainable environmental impact management.