Antam, Pertamina, PLN To MIND ID In An Investment Vortex Of IDR 238 Trillion In Electric Vehicle Batteries

Illustration. (Photo: Doc. Antara)

JAKARTA - Investment in the development of an integrated electric vehicle battery industry ecosystem from upstream to downstream is projected to reach US $ 13 billion to US $ 17 billion (equivalent to Rp. 182 trillion to Rp. 238 trillion).

"From various sources of information and benchmarks, it is known that the investment value of EV battery from upstream to downstream is lowest to highest for a capacity of up to 140 GWh ranging from US $ 13.4 billion to US $ 17.4 billion," said the Head of the Electric Vehicle Project Acceleration Team ( EV) National Battery Agus Tjahajana Wirakusumah at a hearing (RDP) with Commission VII DPR RI in Jakarta, quoted from Antara, Monday 1 February.

The development of the electric vehicle battery industry ecosystem covers the battery industry from upstream to downstream, including infrastructure for charging stations to battery recycling.

Agus, who is also the President Commissioner of MIND ID, said that the large investment is in line with the high technology risk, the domestic market that is not yet big, and the market that depends on original equipment manufacturers (OEMs).

"The battery technology used still depends on global battery players and OEMs as off takers. Meanwhile, Indonesia does not have sufficient experience in building the electric battery industry," he added.

Agus said that Indonesia has the greatest potential among ASEAN countries to be able to build an electric vehicle industrial ecosystem. Apart from having mineral reserves as raw material for electric vehicle batteries, the Indonesian automotive market is also the largest in the region.

"If the battery industry is built, coupled with the largest domestic automotive market in the region, then Indonesia has the greatest potential among ASEAN countries to build an EV industry ecosystem," he said.

By 2025, Indonesia has big ambitions to be able to develop an electric vehicle battery ecosystem.

Indonesia also has the ambition to become a global player in upstream battery or nickel sulfate products, a global player in battery intermediate products (cathode) and a regional and domestic downstream player in electric vehicle batteries so that it can become a center for electric vehicle manufacturing in Southeast Asia.

To realize these ideals, the Ministry of BUMN has prepared a consortium that will build an electric vehicle battery industry, consisting of four BUMNs, namely PT Indonesia Asahan Aluminum (Persero) or MIND ID, PT Aneka Tambang Tbk (ANTM), PT Pertamina (Persero) , and PT Perusahaan Listrik Negara (Persero).

The BUMN consortium is called Indonesia Battery Holding (IBH) and was formed on the assignment of the Minister of BUMN in September 2020.