JAKARTA, KOMPAS.com – Head of the Investment Coordinating Board ( BKPM) Bahlil Lahadalia revealed that LG Energy Solution will do it groundbreaking for the electric vehicle battery industry project in Indonesia by the end of March 2021.
The step taken by the battery manufacturer from South Korea is the realization of an investment worth US $ 9.8 billion for the construction of a factory in Batang, Central Java.
“We want to convey, LG, which invested US $ 9.8 billion, began groundbreaking in late March for the first 10 gigawatts,” Bahlil said in the 2021 Ministry of Trade Rakernas recently.
He explained, later on, LG together with Hyundai, POSCO Group, and a company from China will partner with a state-owned company to build the project.
“They are collaborating with Indonesian SOEs, starting from the mining process, the smelter, the cell battery, the car and the engine,” said Bahlil.
In addition, Contemporary Amperex Technology Co. Ltd (CATL) and BASF are also in the process of investing in industrial projects electric vehicle battery.
As is known, LG previously signed a memorandum of understanding or MoU with the Ministry of Trade for the cooperation project.
Before the cooperation was completed, the government was said to have carried out quite tough and long negotiations for about one year, since 2019.
Bahlil is optimistic that the LG Energy Solution investment will have a positive impact on the regional economy, create multiplier effects, and create jobs for the local community.
Through this joint investment project, Indonesia is projected to advance from a producer and exporter of raw materials to becoming an important player in the world supply chain for the electric vehicle battery industry.