Investor Presentaiton

National Policy Indonesia Electric Vehicle Outlook 2023 Upstream incentives are crucial to unlock the massive potential to become EV manufacturing hub • Indonesia's car manufacturing industry is the second largest in Southeast Asia with close to 1.5 million car production in 2022 (Gaikindo, 2022). Also, the motorcycle manufacturing is the biggest in the region with around 6 million production in 2021. This fact indicates that Indonesia also has the potential to become EV manufacturing hub, especially when an integrated supply chain is available. • With 21 Mt nickel reserves, Indonesia is the only EV manufacturing country that has the main raw material resource for EV. This advantage over natural resources is attractive for automakers to establish manufacturing sites in Indonesia, because cost of raw materials, which affects up to 25% of final battery price, is one of the biggest uncertainties automakers face today (Transport & Environment & BNEF, 2021). Furthermore, the Indonesian government has banned nickel ore exports to secure supplies for the domestic industry. • However, the domestic EV supply chains are not fully integrated yet. Around USD 20 billion has been invested across the whole supply chains, but several battery producers and recycling factories will not be operational until at least 2025. • To unlock the potential of becoming an EV manufacturing hub, the government needs to incentivize the EV upstream industry to help the industry become more competitive, accelerate price decline and create big multiplier effects on the economy. Currently, the existing upstream incentive is limited to reducing Risk Weighted Assets (RWA) for EV financing (producing and buying) from 75% to 50%. • Various forms of incentives have been implemented in more advanced EV markets to drive the manufacturing industry, such as the Advanced Chemistry Cell Production Linked Incentives (ACC PLI) in India. India exempts taxes, tariffs, and duties for its battery industry. In the sub- national level, this policy is combined with job creation allowances package (ICCT, 2021). Top car manufacturing countries in Asia (2021) China Japan 26,082,220 7,846,955 India 4,399,112 South Korea 3,462,404 Thailand 1,685,705 1,121,967 10,000 20,000 30,000 Thousand units Indonesia Source: OICA, 2022 Total EV supply chain investment (USD) 160 million Mining 30 million Battery production EV OEM Recycling 15 billion 5.2 billion Total 20.3 billion Source: Rigel Capital (2022) & IBC (2021) 22 22

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