IPhone Builders Cooperate With IBC To Build Electric Car Manufacturing In Indonesia

Indonesia is entering a new era of electric car manufacturing with Foxconn. (photo: unsplash)

JAKARTA - Indonesia Battery Corporation, a subsidiary of PT Indika Energy and Taiwanese electric scooter vendor Gogoro, is working with Foxconn to build a "new energy ecosystem" in Indonesia.

According to a statement from the Minister of Investment/Head of BKPM, Bahlil Lahadalia, Saturday, January 22, this collaboration also includes the development of EV support industries such as energy storage systems, battery exchange stations, and recycling in Indonesia.

The cooperation is carried out in Investment in the Development of Sustainable New Energy Ecosystems through Investment in Electric Batteries, Electric Vehicles, and Supporting Industries with the Build-Operate-Localize (BOL) cooperation scheme.

The estimated total investment value in these projects by all business partners is estimated to reach USD 8 billion or around IDR 114 trillion. The entire project is expected to generate a total market capitalization of more than USD 100 billion in Indonesia by 2030.

Foxconn, a Taiwan-based company, has previously partnered with several companies to support the development of electric cars. This MoU between IBC and Foxconn adds to a series of such deals by iPhone builders.

"Today we are entering a new era. The Indonesian government will seriously oversee this investment plan, with SOE partners and national entrepreneurs in Indonesia. Under the administration of President Joko Widodo for the second period, Indonesia is very focused on encouraging sustainable investment, especially promoting green energy and green industry," said Bahlil in Jakarta.

The Minister of Investment/Head of BKPM also stated that Foxconn and Gogoro's decision to choose Indonesia as a place to invest was considered very appropriate. Indonesia has added value for investors in three ways, namely a large market where 43% of the ASEAN population is in Indonesia.

In addition, Indonesia is the only ASEAN country that is included in the G20. Then the growth of the upper-middle class in Indonesia is getting better day by day. President Joko Widodo has also assigned the Ministry of Investment/BKPM to oversee this investment commitment.

Foxconn, known as Apple's main iPhone maker, has been expanding its activities in electric vehicles (EVs) in recent years. They also announced deals with US startup Fisker Inc and Thai energy group PTT PCL.

Under the partnership, an open “MIH platform” providing hardware and software services will be made available to companies in Indonesia. But they have not provided details on the size of the investment or production plans.

Liu Young-way chairman, Foxconn himself targets to provide components or services for as much as 10% of the world's EV industry by 2025 to 2027. They want to lower manufacturing costs and other costs for manufacturing cars with their assembly know-how as the world's largest manufacturer of contract electronics.