Jakarta. Industri Baterai Indonesia, an electric battery joint venture of state-owned miners and energy companies, announced two-part investments from Chinese and South Korean companies worth $15 billion to develop an electric vehicle battery ecosystem in the country.
The company, also known as Indonesia Battery Corporation (IBC), is a subsidiary of the state mining holding company Indonesia Asahan Aluminium (Mind ID), utility firm Perusahaan Listrik Negara (PLN), state energy company Pertamina, and state miner Antam.
The first part of the investment concerns one of the company's parent companies Antam with a Chinese corporation, Ningbo Contemporary Brunp Lygend (CBL), for the integrated electric vehicle battery project initiative. The second partnership is with LG Energy Solution, a South Korean company.
IBC President Director Toto Nugroho said the strategic partnership would accelerate the development of a sustainable electric vehicle ecosystem in Indonesia.
"With this integrated battery industry, it is hoped that it can accelerate the growth of the electric vehicle ecosystem," Toto said in a statement on Monday.
"This is expected to accelerate the growth of the electric vehicle ecosystem, create new jobs, increase the use of domestic raw materials, and increase the use of batteries for other needs," he said.
Antam President Director Nico Kanter said the partnership is the first step to developing Indonesia's electric vehicle battery ecosystem.
"Antam supports the government's initiatives for developing electric vehicle batteries to develop an integrated battery downstream industry and increase the added value of Indonesia's mineral commodities in a more strategic direction," Nico said.
Mind ID President Director Hendi Prio Santoso also expressed his appreciation for the historical moment of downstream mining at Mind ID Group and thanked the various parties who have worked hard to realize this partnership.
"Antam, IBC, with CBL and LGES can continue cooperation to a more implementable level and bring benefits to all," Hendi said.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said this was a good step for Indonesia to become a significant electric vehicle battery industry player. "This is an important step for Indonesia to become one of the largest battery industry players in the world," Luhut said.
Pahala Nugraha Mansury, a deputy minister of state-owned enterprises, said the partnership is one of the ministry's most strategic initiatives. "The development of the electric vehicle battery ecosystem initiative allows Indonesia to enter the global supply chain of the battery industry which is very important for people around the world," said Pahala.