Jakarta, May 26 -- The Indonesian government's planned incentives for nickel-based electric vehicles (EVs) could strengthen Indonesia's battery industry and support mineral downstreaming, Gadjah Mada University (UGM) energy economist Fahmy Radhi said.

He said the policy could help direct the development of Indonesia's EV industry toward greater integration with domestic resources.

"Providing incentives for nickel-based vehicles is a good move because Indonesia produces nickel, which can support downstreaming and strengthen the national EV ecosystem," Fahmy said in a statement in Jakarta on Tuesday.

He added that differentiating incentives between nickel-based and non-nickel-based EVs is more targeted than previous policies, particularl...