Jakarta (ANTARA) - Minister of Investment and Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia affirmed that multinational electronics firm Foxconn will realize its investment in Indonesia in 2023.

"It is planned (to be realized) this year," Lahadalia emphasized after presenting the 2023 2nd quarter investment realization report here on Friday.

Lahadalia said he will visit the Taiwan-based company later this year to ensure their investment realization.

"(About) Foxconn, I am planning to visit them after August 17," the minister stated.

He refuted the suggestion that the electronics company has cancelled its investment plan in Indonesia, as it had not yet realized its investment until now.

"No, there is no cancellation, no. I am allergic (to the word), no," the minister remarked.

Lahadalia also made assurance that Foxconn's investment commitment in Indonesia would include developing an electric vehicle (EV) factory.

Foxconn has planned to invest US$8 billion in Indonesia to develop the EV ecosystem. The Taiwan-based company has also established a joint venture with a local private company, Indika Energy, to realize the plan.

He stressed that the investment should be realized, especially as the electric motorcycle subsidy program established by the government will cover only those produced in Indonesia.

Foxconn and Indika Energy as well as Taiwanese battery company Gogoro and state-owned Indonesia Battery Company (IBC) had earlier inked a memorandum of understanding with the Investment Ministry on January 21, 2022.

The four companies planned to invest in Indonesia's EV industry to produce four-wheeler and two-wheeler EVs and electric buses as well as develop its supporting industry, such as energy storage systems, battery exchange stations and recycling, research and development, and training.

The memorandum of understanding includes an agreement to develop a sustainable new energy ecosystem in Indonesia through investment in electric batteries, EVs, and its supporting industries through the Build-Operate-Localize (BOL) cooperation scheme.

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Translator: Ade Irma Junida, Nabil Ihsan
Editor: Azis Kurmala
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