Woohoo! Record, Indonesia receives IDR142 billion of investments from South Korea

Bisnis.com, JAKARTA – The government, through the Investment Coordinating Board (BKPM), entered into a memorandum of understanding with LG Energy Solution in Seoul on December 18, 2020. It involved the construction of a battery cell industry for vehicles electrical

The head of BKPM, Bahlil Lahadalia, said that the disbursement of funds from LG together with several companies, one of which is Hyundai, will make the world’s first factory for production from upstream to downstream.

“Starting with mining, smelter [peleburan], refinement [pemurnian], the precursor cathode industry will be built in Indonesia, “he said through a virtual press conference, on Wednesday (12/30/2020).

Bahlil explained that the investment from this South Korean company was very large, for a total of US $ 9.8 billion or equivalent to Rp142 billion.

“Because in the post-reform BKPM record, an investment of this size has never existed. This is extraordinary because in the midst of the Covid-19 pandemic we have opportunities like this. This is a time for Indonesia to generate optimism and reactivation.” he explained.

The development of the integrated battery electric industry, Bahlil added, is a step towards fostering the economic transformation towards advanced Indonesia 2045. Downstream mining is a manifestation of this transformation.

“Indonesia will go from being a producer and exporter of raw materials to becoming a major player in the global supply chain for the electric vehicle battery industry. Where batteries play a key role, they can reach 40 percent of the total cost. manufacturing an electric vehicle, “he said.