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January 13, 2023, 09.12 PM

JAKARTA, – Indonesia will start to produce batteries for electric vehicles early next year, said the country’s Investment Minister Bahlil Lahadalia.

The statement was made after Bahlil attended a limited cabinet meeting on electric vehicle ecosystem development chaired by President Joko “Jokowi” Widodo at the Merdeka Palace Friday, January 13.

“Based on the plan, the production [of electric vehicle batteries] will start in the first half of 2024 and it will be developed by South Korea’s LG in Karawang,” Bahlil said in a press statement issued by the Cabinet Secretariat.

“Secondly, the construction of the EV ecosystem from upstream to downstream by CATL [China’s Contemporary Amperex Technology Co. Limited] and LG will start this year,” the minister said.

Also read: Indonesia to Produce Electric Cars in March 2022

Bahlil stressed the importance of developing the electric vehicle ecosystem, including batteries, to protect Indonesia’s large domestic market from foreign products.

“As we know that some countries, such as Thailand, provide a lot of 'sweeteners' to stimulate the industry development in their countries and Indonesia should not be left behind,” he said.
Indonesia is also capable of entering the export market. Concerning that, state-owned enterprises have been told to prepare other infrastructures.

The government hopes that the development of an EV ecosystem will promote innovation and job creation. The EV ecosystem development is also focusing on an environmentally friendly industry.

“Going forward, we will limit the construction of smelters that use non-renewable resources. This is part of the government’s concern about the development of green energy and green industry.”

(Writer: Ade Miranti Karunia | Editor: Yoga Sukmana)



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