Electric vehicle battery factory to absorb local workforce: Minister

Electric vehicle battery factory to absorb local workforce: Minister

Investment Minister/Head of the Investment Coordinating Board Bahlil Lahadalia at the groundbreaking ceremony of the South Korean Hyundai Motor Group and LG Energy Solution battery cell factory on September 15, 2021. (ANTARA/Twitter/@setkabgoid/uyu)

In the MoU, we have emphasized that job opportunities should be provided to as many domestic workers as possible and not to foreigners.
Jakarta (ANTARA) - The first electric vehicle battery cell factory in Indonesia, being built in Karawang District, West Java, will prioritize absorbing domestic workers, according to Investment Minister, concurrently head of the Investment Coordinating Board Bahlil Lahadalia.

Lahadalia noted that this clause was agreed upon in a memorandum of understanding (MoU) signed earlier.

"In the MoU, we have emphasized that job opportunities should be provided to as many domestic workers as possible and not to foreigners," the minister stated while attending the groundbreaking ceremony of the South Korean Hyundai Motor Group and LG Energy Solution battery cell factory that was monitored online here on Wednesday.

Furthermore, the minister has informed that foreign workers are only allowed to be recruited under special conditions and for certain positions. It was also agreed upon with the South Korean government.

"When we discussed with the Korean coordinating minister, we had agreed that employment opportunities would be prioritized for the domestic workforce," he stated.

Related news: Indonesia's first electric car manufactured by May 2022: Minister

In addition to collaborating with Indonesian state-owned enterprises, Lahadalia noted that the electric vehicle battery cell project will be encouraged to involve local Micro, Small, and Medium Enterprises (MSMEs) as well as entrepreneurs.

"It is the president's directive, both verbally and written. It has also been mandated in Article 90 of the Job Creation Law," Lahadalia stated.

Construction of the battery cell factory is a collaboration between the Hyundai Consortium -- comprising the Hyundai Motor Company, KIA Corporation, Hyundai Mobis, as well as LG Energy Solution -- and Indonesia Battery Corporation that will be managed by PT HKML Battery Indonesia.

The $1.1-billion battery cell facility is planned to have a production capacity of 10 Gigawatt hours (GWh) of Nickel, Cobalt, Manganese, and Aluminum (NCMA) lithium-ion battery cells annually for the electric vehicles produced by Hyundai.

Construction of the battery cell factory is part of an integrated electric vehicle battery project worth $9.8 billion signed with South Korea.

Furthermore, a workforce of one thousand is expected to be employed at the electric vehicle battery cell factory project.  

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