TEMPO.CO, Jakarta - Investment Minister or the Investment Coordinating Board (BKPM) chief Bahlil Lahadalia announced that Indonesia’s factory of electric vehicles or EV battery will start production in 2023. The construction project of the factory will kick off at the end of July 2021.

The factory is an investment project between a South Korean consortium LG and Indonesia Battery Corporation (IBC).

“The production capacity will reach 10 gigawatts per hour,” said Bahlil in a webinar on the national battery industry held by the University of Indonesia today, June 24.

Bahlil explained that the BKPM this month will sign an agreement to commence the construction project.

He explained the development of the EV ecosystem was deliberately started from downstream to upstream level. The government did not expect an export of semi-finished materials if the upstream industry was built first. “So we tackle it from the downstream level, then the upstream level.”

Bahlil also said the investment in the development of the integrated electric vehicle battery industry in Indonesia is the largest in the world. The investment value reached US$9.8 billion or around Rp142 trillion. LG as one of the investors is also renowned as the world's electric car battery player.

“This is Indonesia's biggest investment post the reform [era],” said Bahlil Lahadalia.

Read: PLN Sets Up Electric Vehicle Charging Points in Bangka Belitung

ANTARA