The investment is the first one in the world that integrates the production of electric vehicles from upstream to downstream sectors, starting from nickel mining; smelters; precursor, cathode, electric batteries, battery packs, and electric cars factJakarta (ANTARA) - President Joko Widodo (Jokowi) pinned his hopes on Indonesia emerging as a major producer of nickel-based goods, such as lithium, electric, and electric vehicle batteries, in the global market.
While inaugurating the second phase of development of the Integrated Electric Battery Industry in Batang District, Central Java Province, on Wednesday, the president stated that the attempt aims to halt in stages the export of natural resources used as raw materials.
Since the start of 2020, Indonesia has stopped the exports of nickel ore.
In future, the government will halt the export of bauxite ore, so that the domestic industry can process bauxite into aluminum, thereby annulling the need to import the commodity.
The halt of raw material exports as well as the industrial downstreaming of raw materials are great opportunities to support Indonesia's green economy, the president affirmed.
"I urge all levels of the government to continue to fully support this project (the Integrated Electric Battery Industry), so it can be realized immediately," he stated.
Development of the integrated electric battery industry is implemented, with an investment of Rp142 trillion (US$9.76 billion) from the South Korean-based LG Consortium.
The project is estimated to absorb 20 thousand workers.
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"I would like to thank the LG Consortium that has collaborated with Indonesian state-owned enterprises (SOEs) and private companies, so we can start the (battery industry) construction today," Jokowi remarked.
In addition, he lauded the Korean corporation’s investment since it is able to facilitate various upstream and downstream industrial activities to be implemented concurrently.
"The investment is the first one in the world that integrates the production of electric vehicles from upstream to downstream sectors, starting from nickel mining; smelters; precursor, cathode, electric batteries, battery packs, and electric cars factories; as well as the battery recycling industry,” he added.
Earlier, Investment Minister/Head of Investment Coordinating Board (BKPM) Bahlil Lahadalia confirmed that the Korean company’s integrated electric battery factory would be developed on a 275-hectare plot of land in the Batang Integrated Industrial Area.
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Translator: Indra Pribadi, Uyu Liman
Editor: Rahmad Nasution
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