He made the statement following the government’s effort to increase its stake in the downstream segment of the integrated EV battery factory project, where it currently holds a 30 percent share, with Danantara expected to participate in the joint venture.
According to Riza, Danantara can help ensure that investments in raw materials and battery production continue despite recent turbulence in the global EV industry.
“We are fortunate because the dynamics in this sector are not easy to navigate. For example, after LG from Korea withdrew, there are now other parties interested in joining,” he said on Friday.
“To ensure all of this progresses smoothly, Danantara plays a key role in maintaining the continuity of investments and the production of battery materials and battery packs,” he added.
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Earlier, Minister of Investment and Head of the Investment Coordinating Board, Bahlil Lahadalia, announced that President Prabowo had approved the Chinese consortium Huayou to take over the project from South Korea’s LG in the US$9.8 billion integrated EV battery development.
He noted that Indonesian state-owned enterprises hold a 51 percent majority stake in the upstream segment of the project, known as “Project Titan.”
The project involves developing an EV battery factory with a total capacity of 30 GWh. LG completed the first 10 GWh before exiting, and Huayou will proceed with the remaining 20 GWh.
With LG investing US$1.2 billion in the US$9.8 billion project, Huayou is expected to contribute the remaining US$8.6 billion.
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Translator: Arnidhya Nur Zhafira, Yashinta Difa
Editor: M Razi Rahman
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