Indonesia’s President Joko Widodo, popularly known as Jokowi, has secured investment commitments for the processing of nickel ore into electric batteries from three major European companies.
These companies are BASF, Eramet, and Volkswagen through PowerCo. Jokowi received these commitments during his visit to Germany, where he attended the Hannover Messer 2023 exhibition.
The President held business meetings with the leaders of these companies at the Kastens Luisenhoff Hotel in Hannover on Sunday (16/4/2023) local time.
Minister of Investment, Bahlil Lahadalia, stated that BASF had expressed its interest in investing in North Maluku to develop the ecosystem for electric vehicle batteries, with an investment of approximately US$2.6 billion, equivalent to Rp38.34 trillion (Rp14,748 exchange rate).
Through this investment, BASF plans to collaborate with their French partner, Eramet, to establish a precursor factory. Both companies have already committed to starting their investment by the end of this year.
Volkswagen, through PowerCo, will also invest by partnering with PT Vale Indonesia (INCO), American car manufacturer Ford Motor Co, and Zhejiang Huayou Cobalt from China to develop the electric battery ecosystem in South Sulawesi.
Furthermore, PowerCo will also invest in other portfolios alongside Eramet and Kalla Group for the development of the electric battery ecosystem. Moreover, PowerCo will collaborate with Merdeka Copper (MDKA) to process nickel ore into electric batteries.
“This is the right time to inform the world that Indonesia is open for investment, not only in Asia but also in Europe,” said the President. “Some will invest directly in EV, and some will guarantee the supply of raw materials. I think this is the momentum to show the world that Indonesia is open for investment to accelerate the domestic value chain of nickel ore into electric batteries.”
He added that his ministry would ensure that the three investment commitments from European companies could be realized by the end of this year to expedite the domestic value chain of nickel ore into electric batteries.
According to the minister, these investment commitments from the three European companies are a manifestation of the Indonesian government’s acceptance and encouragement of inclusive foreign direct investment in the processing of critical mineral resources in the country. It will also dismiss the misconception that Indonesia’s mining industry does not adhere to international standards.
This development is expected to have a significant impact on Indonesia’s economy and position the country as a major player in the global electric vehicle battery industry.