Indonesia will welcome two giant battery companies in the world, namely LG Energy Solution and Contemporary Amperex Technology or CATL. They will pour their investment into Indonesia. Reportedly, their investment in Indonesia will reach up to hundreds of trillions of rupiah.
Deputy for Investment and Mining Coordination at the Coordinating Ministry for Maritime Affairs, Septian Hario Seto, said that until 2026, the two companies will invest approximately US$ 13-15 billion or up to Rp 186-215 trillion in total.
“The size (of investment) if it is seen at just two (companies) until 2026, maybe the total for both is around US$ 13-15 billion, not to mention the others. Overall it might reach US$ 18 billion. The time is until 2028,” Seto said on CNBC’s Closing Bell. Indonesia, Wednesday (30/3/2022).
According to Seto, LG and CATL are key players in the development of electric batteries in Indonesia. Moreover, the two companies are currently two big battery manufacturers that control 55% of the world market share.
“CATL has a market share of 32%, LG has a market share of 23%,” he said.
In addition to the two companies, recently the Apple cs assembly manufacturer, Hon Hai Precision Industry Co. Ltd. (Foxconn), also brings shocking news. They will invest in the electric battery sector in Indonesia.
On the other hand, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia signed a Memorandum of Understanding (MoU) with Hon Hai Precision Industry Co. Ltd. (Foxconn), Gogoro Inc., PT Industri Battery Indonesia (IBC), and PT Indika Energy Tbk.
The cooperation is carried out by investing in the development of a new sustainable energy ecosystem through investment in electric batteries, electric vehicles, and the supporting industries with the build-operate-localize (BOL) cooperation scheme.
The signing was carried out virtually at the offices of the Ministry of Investment/BKPM and Taipei, Taiwan. Minister of State-Owned Enterprises (BUMN) Erick Thohir was also present to witness the signing.
Through this Memorandum of Understanding, Foxconn together with Gogoro, IBC, and Indika will explore cooperation in investing in a comprehensive electric vehicle (EV) ecosystem in Indonesia. Starting from the manufacture of electric batteries (including battery cells, battery modules, and batteries), to the industrial development of four-wheeled electric vehicles, two-wheeled electric vehicles, and electric buses (E-Bus).
The scope of cooperation also includes the development of EV supporting industries which include energy storage systems (ESS), battery exchange/swap stations, recycling, as well as research and development (R&D) in the field of electric batteries and EVs.
The estimated total investment value in these projects by all business partners is estimated to reach US$ 8 billion or around Rp. 114 trillion. The entire project is expected to generate a total market capitalization of more than US$ 100 billion in Indonesia by 2030.