MIND ID Targets Indonesian Battery Holding To Form In The Next Two Months

Electric car illustration. (Photo: Unsplash)

JAKARTA - President Director of the Indonesian Mining Industry or MIND ID Orias Petrus Moedak has confirmed that the Indonesian Holding Battery will be ready within the next two months. Later, this holding will manage the electronic vehicle (EV) battery industry in Indonesia in an integrated manner from upstream to downstream.

"It should be in two months that PT (Indonesia Battery) has been working on it and I only heard from the legal department because it was asked for its opinion of its establishment, the act, who served what," he said, in a virtual press conference, Thursday, October 15.

Orias revealed that MIND ID President Commissioner Agus Tjahjana Wirakusuma was appointed as chairman of the holding establishment. This holding will later take care of the battery supply chain from upstream to downstream.

Furthermore, Orias explained, PT Aneka Tambang Tbk (ANTM) will work on the upstream or nickel mining to supply raw materials. Meanwhile on the downstream side, Pertamina and PT Perusahaan Listrik Negara (Persero) or PLN will run it.

"I talked about the cooperation between PLN and Pertamina, we will participate in the holding equally. In the upstream there are Antam and partners from abroad. Then in the downstream it is Pertamina's quota to invest with external holding or partners. Likewise PLN. 1/3 in the holding, then in the downstream of each combination, so I asked Antam to come, "he said.

Furthermore, Orias said that the total project value could reach US $ 12 billion from the two manufacturers of electric vehicle (EV) batteries or batteries for the world's largest electric vehicle, namely Contemporary Amperex Technology Co. Ltd (CATL) from China and LG Chem Ltd from Korea.

"The project value is 11 billion US dollars in total. From the minister, 12 billion US dollars, because the derivative is further away. So that the figure could be up to 20 billion US dollars if a third partner comes in. The calculation is now 12 billion US dollars from upstream to downstream. , "he said.

Previously, MIND ID as the Minerba Industry BUMN Holding has completed the purchase transaction of 20 percent of the divestment shares of PT Vale Indonesia Tbk or PT VI.

The purchase of PT VI shares by MIND ID is in accordance with the BUMN mandate to manage Indonesia's strategic mineral reserves as well as the downstreaming of the national mining industry, especially nickel. So that it will produce domestic products with economic value up to 4 to 5 times higher than upstream products.

BUMN Minister Erick Thohir stated that the focus of the Indonesian government on downstreaming the mineral and coal industry, especially nickel, received a positive response from foreign investment.

"Indonesia has been known as a producer and exporter of nickel, the main raw material for EV batteries, the world's largest, which controls 27 percent of global market demand," he said in a statement received by VOI , in Jakarta, Wednesday, October 14.

Erick said the Ministry of BUMN's policy to innovate business models in the mineral and coal industry, while increasing the abundant nickel value chain in the archipelago, aims to take advantage of profits while building the domestic lithium battery industry.