Visit Germany, Bahlil Persuades Volkswagen To Invest In Electric Car Batteries In Indonesia

Investment Minister Bahlil Lahadalia (Photo: Instagram @bahlillahadalia)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia paid a working visit to Germany. On the second day of his working visit, he met with Volkswagen AG (VW) Chief Executive Officer (CEO) Thomas Schmall von Westerholt. He persuaded the VW boss to build a battery cell factory for electric vehicles in Indonesia.

"I'm trying to convince VW to make cathode precursors for electric vehicle batteries in Indonesia, as part of the supply chain for raw materials for their electric battery factories and electric vehicles around the world," he said, quoted from the official Instagram account @Bahlillahadalia, Monday, October 11.

Bahlil assured Thomas that the government would make it easier for foreign investors to invest in the country. He stated that the Indonesian government is committed to developing an electric vehicle ecosystem from upstream to downstream.

"We are ready to support and facilitate the supply of raw materials through collaboration with local entrepreneurs and MSMEs in Indonesia," he said.

During the working visit, Bahlil also held a direct meeting with BASF or Badische Anilin-und Soda-Fabrik a multinational chemical corporation from Germany. The meeting was to follow up on BASF's investment interest in the nickel and cobalt hydrometallurgical smelter/refining industry, which produces electric vehicle battery raw materials.

As is known, the plan is that BASF in collaboration with Eramet, a mining company from France, will invest in a nickel-cobalt processing complex for the development of electric vehicles. The project includes the construction of High-Pressure Acid Leaching (HPAL) and Base Metal Refinery (BMR) plants.

Bahlil explained that BASF's investment plan is in line with the current focus of the Indonesian government in realizing industrial downstreaming. In this case, Bahlil requested that BASF's investment not only stop in the nickel refining industry, but also to the final product in the form of electric battery components.

"We will fully support BASF's investment plan. Regarding licensing and investment incentives, we will take care of it. We will continue to monitor it until it is done," he said.

The HPAL construction will be located in Central Halmahera, North Maluku with a production capacity of around 42,000 metric tons of nickel/year and around 5,000 metric tons of cobalt/year.

During the meeting, Markus Kamieth as a member of the BASF Board of Executive Director expressed his appreciation for the commitment of the Ministry of Investment/BKPM in facilitating BASF's investment plans in Indonesia.

Regarding his investment plan, Markus hopes that the Ministry of Investment/BKPM can encourage independent industrial estates to provide proportional electricity from renewable energy.

Based on the records of the Ministry of Investment/BKPM, the cumulative total realization of investment from Germany from 2016 to the second quarter of 2021 reached 1,143 million US dollars, occupying the 16th position among other investment countries. The total number of projects from the realization of German investment in Indonesia is 3,015 and absorbs 35,492 Indonesian Workers (TKI).