TEMPO.CO, Jakarta - Bahlil Lahadalia, head of the Indonesian Investment Coordinating Board (BKPM), said that the investment by LG Energy Solution is the biggest one since the reform era. The company, part of South Korean conglomerate LG Group, invested US$9.8 billion or Rp142 trillion for battery cell development in Indonesia.

"This is a momentum for Indonesia to build optimism amidst the ongoing threat of Covid-19 pandemic," Bahlil said in a written statement, Tuesday, January 5.

The investment was announced on December 30, 2020. LG Energy plans to build an electric vehicle battery cell industry that is integrated with mines, smelters, refineries, as well as the precursor and cathode industries.

The company will form a consortium with four Indonesian SOEs: MIND ID, Aneka Tambang (Antam), Pertamina, and PLN. The plan is to allocate LG Energy's investment for the Batang Integrated Industrial Zone (KIT) in Central Java.

By 2035, Indonesia aims to produce four million electric cars and ten million electric motorcycles. With this investment, the nation sets a goal to advance its position; from producer and exporter of raw materials to a global supplier for the EV battery industry.

Francisca Christy Rosana