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Rabu, 03 Juli 2024

Minister of Investment and Downstream Industry Confident Indonesia Will Become a Global Player in Electric Vehicle Battery Ecosystem

Karawang, July 3, 2024 – The investment project for South Korea’s electric vehicle and battery ecosystem in Indonesia was officially inaugurated by President Joko Widodo at the PT HLI Green Power factory in Karawang, West Java, this morning (July 3). Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia accompanied President Joko Widodo during the inauguration of the USD 4.46 billion (IDR 71.36 trillion) electric vehicle and battery ecosystem.

The Minister of Investment and Downstream Industry/Head of BKPM expressed confidence that once all stages—starting from mining, smelting, HPAL (High-Pressure Acid Leach), precursor production, battery cell manufacturing, to electric vehicle production—are operational, Indonesia will emerge as one of the leading nations in the electric vehicle battery ecosystem, particularly for nickel-based batteries.


“We asked whether there is any other country in the world that has built a battery ecosystem integrated from upstream, from mining to vehicles. It turns out there isn’t, and we, Indonesia, are the first to achieve this,” said Bahlil.


Bahlil highlighted that realizing this investment required extraordinary efforts and support from all stakeholders, especially during the COVID-19 pandemic. The presence of President Joko Widodo, from the groundbreaking of the factory in 2021, through his visit in September 2023, and to today’s inauguration, has been a source of motivation.


“Today marks a new chapter as we jointly witness the inauguration of an integrated electric vehicle battery factory. The total investment is USD 9.8 billion, excluding Hyundai’s investment in vehicles. When accumulated, the total is approximately USD 11–12 billion. This is the largest single ecosystem investment in Indonesia, particularly from batteries to vehicles,” Bahlil stated.


This investment project is a testament to the implementation of the commitment made by President Joko Widodo and President Moon Jae-in during their meeting in South Korea in 2019 to strengthen bilateral economic and investment cooperation between South Korea and Indonesia. The development of this electric vehicle and battery ecosystem includes a battery cell factory for electric vehicles worth USD 3.2 billion (IDR 51.2 trillion), which will create 2,800 jobs. In its first phase, the factory will have a production capacity of 10 GWh, with an investment value of USD 1.2 billion (IDR 19.2 trillion). Other inaugurated investments include a battery pack facility worth USD 42.12 million (IDR 674.32 billion) and electric vehicle production worth USD 1.22 billion (IDR 19.52 trillion).


According to data from the Ministry of Investment and Downstream Industry/BKPM, South Korean investments in Indonesia from 2019 to the first quarter of 2024 reached USD 13.9 billion, including downstream investments in the petrochemical industry recorded as originating from Malaysia. During this period, South Korea ranked 7th among the largest sources of foreign direct investment (FDI) in Indonesia. The three main sectors contributing to South Korean investment were electricity, gas, and water (21%); automotive (18%); and machinery and electronics (10%). 


For further information, please contact:

R. Leidy Novanda

Senior Public Relations Officer

Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: humas@bkpm.go.id

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