Coordinating Minister for Economic Affairs Airlangga Hartarto met with Dong Choon Kim, Vice President of LG Chem and President of LG Chem's Advanced Materials Company, and his delegation in Jakarta on Friday to accelerate collaboration.
"The LG Group's support for the development of the EV ecosystem and clean energy in Indonesia is highly valued, and we hope to strengthen this partnership," Hartarto said in a statement.
Hartarto and Kim acknowledged that despite challenges such as declining global demand for EVs, there remains significant potential for the EV ecosystem's growth in Indonesia.
Kim expressed appreciation for the Indonesian government's long-standing support for LG Group, which has been operating in the country’s manufacturing sector for years.
"For us, Indonesia will always be a strategic partner for LG Chem, especially in the green industry sector," he said.
He also highlighted LG Chem’s role in the global EV supply chain, including its collaboration with LG Energy Solution and Hyundai to build an EV battery cell factory in Karawang, West Java.
The factory is being constructed in two phases: the first, with a capacity of 10 gigawatt-hours (GWh), was completed in 2024, while the second, with a capacity of 20 GWh, is currently underway.
LG Chem also praised the Indonesian government's support for the grand package plan to accelerate investment in the sector.
Beyond the EV sector, LG Chem proposed collaborating with Indonesia on biodegradable plastics by providing its technology.
Hartarto welcomed the proposal, reaffirming the government’s commitment to attracting investment in various clean energy projects.
One key initiative is the plan to process palm oil into sustainable aviation fuel (SAF), an area where Indonesia holds strong potential.
LG Chem, which recently developed SAF production in South Korea, expressed interest in collaborating on SAF development in Indonesia.
Related news: What’s next for Indonesia-South Korea relations under Prabowo?
Related news: Indonesia calls for optimization of IK-CEPA
Translator: Bayu Saputra, Yashinta Difa
Editor: Anton Santoso
Copyright © ANTARA 2025
