It is just a misperception…The construction will be completed in 2023. How can it be canceled?
Jakarta (ANTARA) - Minister of Investment and head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, on Thursday clarified that reports of Korean company LG’s exit from the electric vehicle battery project in Indonesia were not true.

He emphasized that there has been no change regarding the LG Energy Solution consortium's investment in Indonesia. He also assured that their investment plan is still in place.

"The process regarding LG's investment in Indonesia has not changed. It is still going," the minister said at a press conference on “Investment as the Driver of Economic Growth” in Jakarta on Thursday.

Lahadalia informed that there has been a change in the members of the consortium because the project with PT Indonesia Battery Corporation (IBC) would be carried out in an integrated manner from upstream to downstream.

"What has changed is the members of the consortium. Consortium members are their internal affairs. There are several consortiums in the project. They reported there was a change in the consortium," he said.

"It is integrated from the mining, precursor smelter, cathode, and battery cell. There were several joint ventures that may be switched as well. That is a normal corporate action," he added.

He confirmed that LG's investment will continue according to schedule. In addition, Lahadalia will go to South Korea to secure the investment.

"It is just a misperception. The investment cannot be canceled. The project to produce 10-gigawatt batteries for electric vehicles has been running in Karawang. The construction will be completed in 2023. How can it be canceled? The investment value is around US$1 billion," he said.

The minister further said that he could not disclose details of the change in the consortium members since it is related to corporate ethics.

He said LG's investment project is a collaborative that will strengthen Indonesia's relationship with South Korea. The government has pledged to make sure that the project stays on track and will not be detrimental.

"The most important thing is that the project is still running. For the Indonesian government, this is a form of cooperation between Indonesia and South Korea. Regarding the members of the consortium, we will not bother with it. We have told them that this project must keep going fast," the minister said.

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Translator: Ade Irma J, Resinta S
Editor: Tia Mutiasari
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