Jakarta. A recent executive order by US President Donald Trump rolling back electric vehicle (EV) mandates is likely to disrupt Indonesia’s burgeoning EV ecosystem, according to the Center of Economic and Law Studies (Celios). The policy could significantly impact demand for critical minerals, foreign investment, and global financing for green energy projects, while strengthening China’s grip on Indonesia’s nickel downstream industry.
Bhima Yudhistira, Executive Director of Celios, said reduced global demand for EV batteries could pressure prices for commodities such as nickel, copper, and bauxite—key components in EV manufacturing.
“Nickel prices have already dropped 3.7 percent year-on-year, while cobalt has plummeted 16.6 percent over the same period,” Bhima said on Tuesday. He warned that further price declines could prompt US automakers to reconsider their raw material supply contracts, potentially disrupting Indonesia’s mining sector.
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