JAKARTA - LG Energy Solution Ltd. together with Investment Coordinating Board (BKPM) have signed a Memorandum of Understanding (MoU), containing US$ 9.8 billion investment plan, for developing an integrated battery cell industry.
The investment in that project is a follow-up to a meeting between President Joko Widodo and President Moon Jae In, in South Korea in November 2019. In this project, LG Energy Solution will work with a consortium of State-Owned Enterprises (SOE).The two parties will work together to build a battery cell industry for electric vehicles, which also are integrated with mining, smelting, and refining of battery materials.
"The MoU is a very serious sign of LG and Indonesian government to develop an integrated battery industry," said Bahlil Lahadalia, Head of BKPM, to idnfinancials.com today.
As for a number of SOE companies involved in this project, namely MIND ID consortium, consists of PT Inalum (Persero), PT Aneka Tambang Tbk (ANTM), PT Pertamina (Persero), and PT PLN (Persero).
Erick Thohir, Minister of SOE, said that SOE’s battery consortium would build the entire battery production supply chain together with LG Energy Solution. "In its implementation, it will be followed up with a joint study to measure, in detail, the cooperation between two parties from the upstream to downstream sectors," said Thohir. (KR/VA)