LG Energy Solution Investment In Indonesia Capai Rp160.57 Trillion

Electric battery illustration (Photo: Unsplash)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed that the total investment commitment of the LG Energy Solution (LG) consortium for electric vehicle batteries projects from upstream to downstream in Indonesia reached 9.8 billion US dollars equivalent to Rp160.57 trillion (exchange rate of Rp16,385 per US dollar)

"Today is signaling a new chapter, where we are both witnessing the inauguration process of an integrated car battery factory. The total investment is 9.8 billion US dollars, minus investment from Hyundai for cars. So if everything is accumulated, it is approximately 11-12 billion USD," Bahlil said in his remarks at the inauguration of the electric battery project in Indonesia, which was worked on by PT Hyundai LG Indonesia.

Bahlil also said that with synergy with SOE Minister Erick Thohir, Indonesia had completed all stages of building an electric vehicle ecosystem starting from mining, smelters, HPAL, precursors, cathodes, cell batteries, to cars.

Bahlil said that Hyundai's investment in the electric vehicle battery factory is the largest investment in one ecosystem in Indonesia today.

"Alhamdulillah, it's finished, and today 1.2 to 1.5 billion US dollars are finished, it will be done again in the second stage, namely 2 billion for 20 giga the second stage. The others are also ready to be done," explained Bahlil.

In front of President Joko Widodo too, Bahlil showed off that Indonesia was the first country to have an electric vehicle (EV) battery ecosystem from upstream to downstream.

"After we discussed it, we asked whether there is already a world that has not built an integrated car battery ecosystem from upstream, from mines to cars. It turns out that Sir, there is no one yet, and we are the first Indonesians to do this," concluded Bahlil.