"We should be grateful to witness the groundbreaking of the construction of the first electric vehicle battery factory in Indonesia and also the first in Southeast Asia," President Jokowi stated in Karawang District, West Java, as seen on the Presidential Secretariat's YouTube channel, Wednesday.
He noted that construction of the electric vehicle battery factory was testament to the government's seriousness in downstreaming the industry and changing the domestic economic structure, which had been based on raw commodities, to one based on the industrialization process.
Jokowi highlighted that Indonesia had the largest nickel reserves in the world. If nickel reserves can be managed properly, the president believes that in the next three to four years, Indonesia can become a major producer of nickel-based goods, such as lithium, electric, or electric vehicle batteries.
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According to the president, the downstreaming of the nickel industry will significantly increase the added value of nickel ore. If processed into battery cells, the value of nickel ore will increase by six to seven folds. Meanwhile, if it is processed for the manufacturing of electric cars, then the added value of nickel ore will increase 11 folds.
"Hence, development of the battery industry will also increase Indonesia's appeal as an investment destination for derivative industries that use batteries, such as investment in electric motors, electric buses, and electric cars," Jokowi noted.
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The first electric vehicle battery factory, whose construction will commence, is managed by PT. HKML Battery Indonesia.
"In the name of Allah, the Most Beneficent, the Most Merciful, I declare that the groundbreaking of the electric vehicle battery factory of PT. HKML Battery Indonesia has begun," President Jokowi stated.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan, Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, Minister of SOEs Erick Thohir, and West Java Governor Ridwan Kamil also attended the groundbreaking of the electric vehicle battery factory.
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