Bahlil Reveals Strategy To Get Electric Car Battery Investment

Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia/PHOTO VIA ANTARA

NUSA DUA - Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed that there were a number of strategies undertaken to attract investment in electric car batteries to Indonesia.

In addition to promotion and providing ease of licensing, his party is also looking for options to acquire an electric car company from Germany.

"BUMN owns IBC (Indonesia Battery Corporation), a company to handle the car and car battery ecosystem. There is a plan to acquire car factory shares in Germany. There are only two ways, if we can't build it, we will acquire it," he said. Bahlil told reporters in Nusa Dua, Bali, quoted by Antara, Sunday, December 19.

Bahlil emphasized that even though he took the acquisition step, he ensured that the price must still be economical and the process transparent.

The former Chairperson of Hipmi explained that promotional efforts are still being carried out, including promotions in facilitating investment licensing.

Bahlil said that Indonesia holds 22-24 percent of the world's nickel reserves. The quality of the nickel content, he said, is the best.

In addition, the location of Indonesia's nickel mines is still relatively close to the port so that the production costs are much more economical.

"Car batteries are made of nickel, manganese, cobalt and lithium. Of the four, we just don't have lithium. So 85 percent of the raw materials for car batteries are in our country. We don't want to," he said.

Bahlil said, as with the national strategic plan, Indonesia had to fully switch to electric vehicles by 2040.

The plan has also started to be boosted since 2019, where the government finally succeeded in attracting Hyundai from South Korea, to enter Indonesia.

Not only South Korea, the government is also targeting electric battery manufacturers and the world's electric vehicle industry to invest in Indonesia. Investment commitments have also come from CATL from China and Foxconn from Taiwan.

"Foxconn will also build an electric car in 2022. Now there is CATL to build a battery factory, but he is also cooperating with a car factory from China," said Bahlil.