Holding Indonesia Battery Corporation (IBC) Officially Formed, Has Investments Of 17 Billion US Dollars

Electric car illustration. (Photo: VOI)

JAKARTA - The government, through the Ministry of State-Owned Enterprises (BUMN), has officially established the holding of a national battery company for electric vehicles called Indonesia Battery Corporation (IBC).

BUMN Minister Erick Thohir revealed that this latest holding is supported by four state-owned companies, namely PT Aneka Tambang Tbk. (Antam), PT Pertamina, MIND ID, and PT Perusahaan Listrik Negara (PLN).

Meanwhile, the share composition contributed by the four business entities has the same portion, namely 25 percent each.

"We have the largest nickel (battery raw material) in the world with 24 percent. Of course with the electric car battery II, Indonesia will increasingly support a green economy”, he said, Friday, March 26.

Erick added, although this formation is still a written agreement, the government has secured investment commitments with several big partners.

He revealed that IBC was noted to have collaborated with China's Contemporary Amperex Technology (CATL) and LG Chem from South Korea with an investment value of 17 billion US dollars.

In the implementation scheme in the field, the IBC will divide its work into several stages. As an initial step, the holding entity will work on a number of upstream projects such as opening up mining areas.

Then, it was continued with the construction and development of raw material refining activities (smelters), to the opening of the electric battery product derivative industry.

It is planned that the work of Indonesia Battery Corporation will begin to be optimally boosted in 2022.

"This is proof that if we want we can, as well as legitimacy for Indonesia", concluded Erick.