UK Invests IDR135 Trillion for Indonesian EV Battery Factory

VIVA – In an internal meeting at the Presidential Palace at the end of last month, Indonesian President Joko Widodo (Jokowi) together with several ministers and President Director of Aneka Tambang, Nicolas D Kanter discussed investment from the United Kingdom (UK) related to the construction of an electric car battery and cell battery factory as the government's plan to encourage the growth of electric vehicle. 

This investment involves cooperation between British companies such as Envision, with several companies from Belgium and Australia.

"This UK investment is in collaboration with several companies from Belgium as well as from within the country, including state-owned enterprises and Australia Concord," said Minister of Investment/Head of the Investment Coordinating Board, Bahlil Lahadalia, as reported from the State Secretariat's YouTube on Friday.  

With a total investment of US$9 billion or around IDR 135 trillion, this project is expected to accelerate the development of the electric vehicle battery ecosystem in Indonesia.

This investment from the UK includes not only the construction of an electric car battery factory, but also cell batteries. The factory will be built in an industrial area that uses green energy, with a choice of wind power in Bantaeng, Sulawesi.

In addition, this investment will also encourage the development of a nickel mine in Papua, which is one of the important sources of raw materials in the production of electric car batteries.

With this nickel mine, Indonesia can reduce its dependence on nickel imports and increase its competitive advantage in this sector.

In the first phase of development, the cell battery plant is expected to have a production capacity of 20 gigawatts.

"In the future, we will definitely increase both domestic demand and exports. Exports for Europe, this is the United Kingdom, it will be the center for Europe," he informed.