Indonesia must focus on being a producer of electric vehicle batteries because it has a strong supply of raw materials, according to the Coordinating Minister for Maritime Affairs and Investment, Luhut Pandjaitan.

He said that the development of lithium batteries using locally-sourced raw materials in the country is very possible. Indonesia is rich in nickel and cobalt, two main ingredients of electric vehicle batteries.

"Based on a study, the Philippines is number two after Indonesia for nickel ore. It will be exhausted in the next two years. Indonesia will be the first choice and other countries will depend on us (for raw material for batteries)," he said in an online discussion forum titled Indonesia Moving Forward.

For this reason, Luhut said the focus of the government was to accelerate the transfer of technology related to nickel ore. The ultimate goal is the fast developing electric car battery industry. Batteries are a major component in electric cars. The ability to produce batteries makes Indonesia a main advantage and can attract other supporting lines.

Luhut said that development in the transportation sector will also improve connectivity, which is now a challenge for an archipelago like Indonesia.

Meanwhile, new renewable energy that utilises geographical location, including the reduction of carbon emissions through electricity-based transportation will also attract the attractiveness of Indonesia as an investment destination.