Electric Vehicle Battery Development Project Located In Batang Industrial Area

Illustration. (Photo: Unsplash)

JAKARTA - Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that some of the electric vehicle battery industry development projects will be located in the Batang Integrated Industrial Zone (KIT), Central Java.

According to Bahlil, this location was reviewed by President Jokowi at the end of last June. This 4,300 ha industrial estate is a pilot for the cooperation between the government and BUMN in providing competitive land in terms of price, connectivity and labor.

"Some of the projects will be located in the Batang Integrated Industrial Zone (KIT), Central Java. The plan is that some of the batteries produced from this project will be supplied to the first electric car factory in Indonesia which already exists and in the near future will begin the production phase. , "he said, in a press conference, Wednesday, December 30.

According to him, the development of an integrated electric battery industry is a concrete step in accordance with President Jokowi's target to encourage economic transformation towards an advanced Indonesia by 2045. Downstream mining is one form of this transformation.

In the realization of project investment, said Bahlil, this joint venture will prioritize working with national entrepreneurs, national entrepreneurs in the regions and local small and micro enterprises (UKM) that have the capability and capacity in each supply chain. Thus it is hoped that it can drive the national economy which has a positive impact on the regions.

"So, this investment will become a complete collaborative model involving foreign companies with global reputation, capable BUMNs, and strong national / regional private economic players," he said.

Bahlil said, another thing that was also part of this memorandum of understanding was to prioritize local products to increase the competitiveness and productivity of national industries.

"The Indonesian government also ensures that this giant investment project will absorb the maximum number of Indonesian workers," he said.

For your information, BKPM together with the Ministry of State-Owned Enterprises (BUMN) and related Ministries / Institutions, officially pressed cooperation with the South Korean LG consortium for a giant and strategic investment project in the integrated electric vehicle battery cell industry.

The signing of a Memorandum of Understanding (MoU) with LG Energy Solution in Seoul, South Korea on December 18, 2020. The signing was witnessed by the South Korean Minister of Trade, Industry and Energy Sung Yun-mo.

In this project, the SOE consortium involved, namely the Holding of BUMN Mining MIND ID (Inalum), PT Aneka Tambang Tbk (ANTM), PT PLN (Persero), and PT Pertamina (Persero).

To note, this investment cooperation project is the result of a follow-up to the meeting between President Jokowi and President Moon Jae In in Busan in November 2019.