Manulife: Thanks To The Omnibus Law, Foreign Investors Are Flocking To Invest In Electric Car Batteries In Indonesia

Illustration. (Photo: Unsplash)

JAKARTA - It is believed that the reform of the labor system and the business sector as stated in the omnibus law can make Indonesia a new world industrial supply chain.

Chief Economist and Investment of PT Manulife Aset Manajemen Indonesia Katarina Setiawan this regulatory reform can be a special attraction to attract investors to invest in this country. For example, Katarina gave a parable about the entry of foreign funds to work on the renewable energy sector.

"We saw some time ago that there were commitments from foreign investors who wanted to build an electric car battery factory in Indonesia," he said in a webinar, Thursday, January 14.

According to him, the combination of regulations that support the business sector with a wealth of natural resources is the right combination to increase the competitiveness of the Indonesian economy in the global arena.

In his presentation, Indonesia is one of the world's nickel producing countries, which is the raw material for making lithium batteries for electric vehicles. Meanwhile, the mineral reserves are estimated to reach 21 million metric tons at the same time the highest in the world.

“Omnibus law has the potential to turn Indonesia into an important supply chain player. Hopefully, we will be able to seize opportunities for company relocation in an effort to encourage job creation in the country, "he said.

For information, on December 18, 2020, Indonesia has just signed a Memorandum of Understanding (MoU) with LG Energy Solution. The commitment is planned to be realized by establishing a lithium battery factory for electric cars with a total investment of up to 9.8 billion US dollars or equivalent to Rp142 trillion.