Rosan Says LG Will Still Invest In Indonesia

JAKARTA - The Ministry of Investment and Downstreaming / Head of the Investment Coordinating Board (BKPM) revealed that South Korean technology company LG will continue its investment in Indonesia, although the total investment is not as large as the initial commitment of 9.8 billion US dollars.

This was conveyed by the Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani in a press conference, Tuesday, April 29.

"Indeed yesterday there was news of LG, one of the investments was discontinued. However, not all of the programs they stopped. From 4, one has been running. And tomorrow I will come to one of the investment places," he said.

Meanwhile, this ongoing project is in the battery cell production sector, with the investment value that has been realized reaching USD 1.1 billion and plans to increase investment by USD 1.7 billion to develop the project further.

Rosan explained that three of the four LG joint ventures did decide not to continue their investment. However, the other project continues to invest

"In fact, this joint venture is only one, two, and three, the fourth is already running and the investment has been completed, the value is 1.1 billion US dollars in battery cells. That's done. Instead, they want to increase the investment of 1.1 billion US dollars to 1.7 billion US dollars for the development of the investment," he said.

Meanwhile, the position left by LG in the Indonesian electric vehicle ecosystem will be filled by a company from China, namely Huayou, because it has stated its commitment to fill the place left by a South Korean company.

In addition, Huayou is also known to have invested in the Morowali and Weda Bay industrial areas.

Rosan said that the Government will continue talks with Huayou in May to explore its investment plans in the electric vehicle sector in the near future.

"Later we will continue the discussion in more detail in May to follow up. But basically they are ready to enter to realize the grand package, because large investments in order to realize yesterday's planned and target for the last five years have been delayed," he explained.

He added that this step is a positive signal because the partners interested in continuing the investment are those who already have a track record in Indonesia.

"We hope that this will use more materials in Indonesia. That's what we encourage and we see that this is a positive thing because interested partners are those who have invested in Indonesia so far," he concluded.