Investor Presentaiton

Manufacturing Industry Challenges in underdeveloped battery industry hinder the government's efforts to promote the EV industry through LCR weighting adjustments 60% 40% 20% Status of LCR from a number of EV's brand 10% EV LCR calculation adjustment for 2023 10% 30% 50% 10% 20% 20% 11% 12% 58% 35% 10% 12% 20% Main component R&D Assembly manufactures Auxiliary component manufactures 0% 4-wheelers 2-wheelers 3-wheelers Body, cabin, chasis Source: P3DN Mol (2022) Source: Mol Regulation No. 6/2022 Battery Motor • • Currently, various E4W and E2W brands have achieved the government's LCR target of 40% by 2022. The targets will gradually increase to 60% for both E2W & E4W in 2024, 80% for E2W in 2026, and 80% for E4W in 2030. However, some EV industries could choose not to comply with the LCR assessment as it is not necessary for B2C sales. Opportunities to enforce the LCR emerge with the recent government plans to conduct public procurement for government official vehicles and provide customer incentives through Presidential Instruction No. 7/2022. To benefit from these government programs, manufacturers need to comply with the LCR. Encouraging the local production of main EV components is a crucial step for the industry as the weight of the LCR calculation in 2023 will shift from assembly to main components manufacturing. The weight of assembly will be lowered by 8% while the weight for battery, motor, and chassis manufacturing will increase by 5%, 2%, and 1%, respectively. This shift aims to accelerate the production of batteries and other main components. However, the implementation of a domestic end-to-end supply chain to meet the LCR criteria may face difficulties, given the lack of operational and even unbuilt battery manufacturing facilities. Indonesia Electric Vehicle Outlook 2023 31

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