A German Company Will Build An Electric Car Battery Factory In Indonesia This Year

JAKARTA - A German company, BASF will build an electric vehicle (EV) battery factory in Indonesia starting this year. This commitment was obtained by the government after the World Economic Forum (WEF) meeting in Davos, Switzerland last week.

This was conveyed by the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia in a press conference, Tuesday, January 24.

Bahlil is optimistic that the factory construction plan will be executed this year. So that Indonesia can pocket an increase in foreign investment.

"This year, God willing, BASF will have a groundbreaking. BASF will cooperate in North Maluku," said Bahlil.

Bahlil said, BASF will work with mining teacher from France, Eramet SA to build an industrial ecosystem for electric vehicle batteries to precursors.

"He will build an EV battery ecosystem, God willing, he will arrive at the precursor, the investment is approximately US$ 2 to 2.6 billion," he said.

Bahlil emphasized that the influx of investment from this German company is proof that the government is not only intensively attracting investment from certain countries such as China.

"BASF is one of the biggest companies in the world, especially petrochemical players. Yes, this is not a hotcakes company. So it's not only what we take care of Korea, Japan, China, we also take care of Europe. The proof is that they will enter this year for groundbreaking," he said.

For your information, BASF and Eramet SA have pressed an agreement to study the construction of a high-pressure acid leaching (HPAL) factory which is planned to be built in Weda Bay, Central Halmahera, North Maluku.