Indonesia offers investment in chemical industry to Germany's BASF

Indonesia offers investment in  chemical industry to Germany's BASF

Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan offered investment in Indonesia's chemical industrial sector to BASF while visiting the office of this Germany's leading chemical company in Ludwigshafen Verbund on Wednesday. (27/11/2019). (ANTARA/HO/Kemenko Kemaritiman dan Investasi)

Jakarta (ANTARA) - Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan offered investment in Indonesia's chemical industry sector to Germany’s BASF during a visit to the office of this leading chemical company in Ludwigshafen Verbund, Wednesday.

During the visit to BASF's headquarters, Pandjaitan was accompanied by Indonesian Ambassador to Germany Arif Havas Oegroseno and Chairman of the Investment Coordinating Board (BKPM) Bahlil Lahadalia.

They were received by Daniel Schönfelder, who heads the European arm of BASF's Battery Materials business, along with several other BASF officials, the Coordinating Ministry for Maritime Affairs and Investment's press statement revealed here on Thursday.

Pandjaitan remarked that the Indonesian government had currently been attempting to transition the country from a commodity-based exporter to a value-added, product-based one.

"We have just exported raw materials to be then processed abroad for many decades. We import the processed products. Now, we are keen to change this. The raw materials are processed in Indonesia to provide our people with added values," he stated.

For instance, Indonesia holds vast potential in terms of its various supporting components for making EVs. It also possesses the world's biggest nickel reserves, he noted.

Furthermore, Indonesia is also one of the nations, with abundant reserves of limonite, one of the raw materials for producing lithium-ion battery. Some 70 to 80 percent of the main components of lithium batteries for EVs are available in Indonesia, he stated.

In the meantime, Daniel Schönfelder, vice president of business management for the European arms of BASF's battery materials, was quoted as saying that Indonesia's huge potency was relevant to the mission of BASF in becoming the leading producer of batteries for EVs.

He pointed out that despite the big electric push ongoing in the European Union territories, its market remains small. In future, the markets of EVs would continue to grow since more customers would prefer eco-friendly products.

Schönfelder stated that BASF had planned to increase the proportion of nickel in its EV-battery products to boost their performance, but he also questioned a possibility of raising costs for environmental protection.

In response to this question, Pandjaitan made assurance that Indonesia would not formulate policies that could lead to environmental damage. President Joko Widodo has instructed policy makers to come forth with policies that also take into account the fate of future generations.

"Well, if you are keen to run a business with competitive prices, cheap logistics, and pro-environment while assisting us to reduce the poverty rate, please come to Indonesia," he emphasized.

As published on BASF's official website, the Ludwigshafen Verbund site, with an area of approximately 10 square kilometers, is the world's largest integrated chemical complex. Related news: Luhut welcomes Hyundai for investment in Indonesia as production base
Related news: Electric vehicles must absorb local products: minister


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