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Jakarta, CNBC Indonesia – Indonesia will have the center of the world’s first battery cell industry for electric vehicles. The company will develop this industry electric vehicle (EV) or electric vehicle battery from South Korea, LG Energy Solution Ltd, in collaboration with a consortium of BUMN.
The head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, said that this cooperation agreement requires the government to go directly, because several things have to be negotiated.
“We no longer want B2B (business to business), the state does not participate, the signals are not regulated by the state. There are many requests that need to be negotiated, one of which we ask that nickel processing at least 70% must be a precursor and cell battery, “Bahlil explained at a press conference on Wednesday (12/30/2020).
“For our country to really have a multiplier effect downstream. So it is not building the smelter first, but building the battery (factory) first. So, from downstream to upstream,” Bahlil said.
Bahlil believes that if the construction of this project is carried out under a B2B scheme, it is unlikely that local entrepreneurs and MSMEs will be able to involve them.
“For B2B, I have the belief that the involvement of local entrepreneurs and UMKM is generally ignored. I don’t want to be missed like that anymore,” explained the former HIPMI president.
As is known, on December 18, 2020, the government through BKPM signed a Memorandum of Understanding (MoU) with LG Energy Solution in Seoul, South Korea. The signing was witnessed by South Korea’s Minister of Commerce, Industry and Energy, Sung Yun-mo.
BKPM, together with the Ministry of Public Companies (BUMN) and other related Ministries / Institutions, held several follow-up meetings with LG.
A series of long negotiation processes have been carried out, guided by the principle of mutual trust and seeking mutual benefit.
The Ministry of BUMN has prepared a MIND ID consortium consisting of PT Indonesia Asahan Aluminum (Inalum), PT Aneka Tambang Tbk (ANTM), PT Pertamina and PT Perusahaan Listrik Negara.
“Upstream or the smelter, it is with Antam, then the precursors are Pertamina and PLN, and MIND, the same cell battery,” Bahlil explained.
Bahlil said that the value of the investment plan for this project reaches US $ 9.8 billion, equivalent to Rp 142 billion, at an exchange rate of Rp 14,500 / US $.
This investment cooperation project is the result of a follow-up meeting between President Jokowi and President Moon Jae In in Busan in November 2019.
Some of the projects will be located in the Batang Integrated Industrial Zone (KIT), Central Java, which President Jokowi reviewed at the end of last June.
This 4,300-ha industrial estate is a pilot for cooperation between the government and BUMN in the provision of competitive land in terms of price, connectivity, and labor.
The plan is that some of the batteries produced from this project will be supplied to the first electric car factory in Indonesia that already exists and will soon start the production phase.
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