Investment Rivalry in Electric Vehicle Transition between South Korea and China in Indonesia
Year: 2025
Type: article
Abstract: The electric vehicle (EV) transition is becoming a global trend in an effort to address the environmental crisis and reduce dependence on fossil fuels. Indonesia, with its wealth of mineral resources, especially nickel, has a strategic position in the global supply chain of the EV industry. In this context, South Korea and China are two major players competing to gain market dominance in Indonesia. This study aims to analyze the rivalry between South Korea and China in electric vehicle investment in Indonesia, as well as its impact on the development of the EV industry in the country. This study uses a qualitative approach with a descriptive analysis method. Data were obtained from various secondary sources such as scientific journals, industry reports, and national policies related to electric vehicles. The theory of neoliberalism is used as a theoretical basis to understand how cooperation between the two countries can have an impact on the Indonesian economy, both from an environmental and social perspective. The results of the study show that South Korea tends to adopt an approach based on technology transfer and strategic collaboration with local companies, such as Hyundai, which is building a battery factory in Indonesia. Meanwhile, China implements a more aggressive investment strategy by controlling the raw material supply chain and building massive EV production infrastructure. This rivalry creates opportunities for Indonesia in the form of investment, jobs, and technology development, but also poses challenges in terms of regulation, dependence on foreign technology, and environmental impacts from the exploitation of natural resources. By understanding the dynamics of this competition, Indonesia can optimize its EV industry policy to gain maximum benefits from foreign investment while building a sustainable electric vehicle ecosystem.
Institution: Universitas Muhammadiyah Malang
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7217606550