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President Jokowi Inaugurates Electric Vehicle Ecosystem and Southeast Asia's First and Largest Electric Battery Cell Factory

Source : Presidential Secretariat Press

President Joko Widodo accompanied by Minister of invesment/Chairman of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, inaugurated the battery ecosystem and South Korea's electric vehicle (EV) in Indonesia, held at PT. Hyundai LG Indonesia (HLI) Green Power in Karawang Regency, West Java Province, on Wednesday, July 3rd, 2024. The President mentioned that this is the first and largest EV battery cell factory in Southeast Asia.

During his speech, the President emphasized the importance of the battery ecosystem as a new milestone in Indonesia's commitment to becoming a major player in the global electric vehicle supply chain. He stated, "Today, we have initiated a new phase in laying down a milestone of our commitment to becoming a global player in the EV battery cell and electric vehicle ecosystem."

The President also appreciated the vision and courage of Chairman Chung from Hyundai, who initiated this project amidst the challenges of the global pandemic. According to the President, this significant project would not have progressed without Chairman Chung's vision and courage.

"Once again I want to express my appreciation to Chairman Chung for his courageous decision-making amidst the pandemic," stated the President.

Furthermore, the President stated that this project encompasses not only the construction of smelters and electric vehicle battery cell factories but also integrates the added value of Indonesia's natural resources such as nickel, bauxite, and copper. Through this integration, the President believes that Indonesia can compete with other countries in the electric vehicle sector. "Who can challenge us in electric vehicles when our conditions are so competitive?" said the President.

Source : Presidential Secretariat Press

The President expressed appreciation for the Rp20 trillion investment from Hyundai's car factory and the consortium between Hyundai and LG, amounting to Rp160 trillion for the electric battery ecosystem. Investment in this project highlights the strong partnership between Indonesia and South Korea. "May this mark further improvement in the relationship between the Republic of Korea and Indonesia," stated the President.

The 319,000 square meter battery cell factory is a joint venture between Hyundai Motor Group and LG Energy Solution. By the first half of 2024, the factory's annual capacity will reach 10 GWh of battery cells, enough for 150,000 electric vehicles.

The ceremony was attended by several key officials including Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia, Minister of Industry Agus Gumiwang Kartasasmita, Minister of State-Owned Enterprises Erick Thohir, Presidential Chief of Staff Moeldoko, and Acting Governor of West Java Bey Machmudin. Also present were South Korean Minister of Trade Inkyo Cheong, South Korean Ambassador to Indonesia Lee Sang-deok, Executive Chair of Hyundai Motor Group Euisun Chung, and President of LG Energy Solution Dongmyung Kim.

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