Danantara Expected to Maintain Electric Vehicle Investment Climate

KatadataOTO – The investment climate in the electric vehicle development sector in Indonesia is believed to become more optimal in the future. This is because the Anagata Nusantara Power Investment Management Agency, or commonly called BPI Danantara, will participate.

Thus, it is hoped that challenges that could potentially hinder companies from investing can be further minimized.

“The presence of BPI Danantara can help stabilize the investment climate of the electric vehicle ecosystem,” said Faisol Riza, Deputy Minister of Industry, as reported by Antara (23/05).

One of the efforts is to increase the share portion for the joint venture (JV) battery downstreaming project through BPI Danantara by more than 30 percent. This is in accordance with the directive of President Prabowo Subianto.

Photo : Nissan

According to him, the presence of Danantara can ensure that investments up to the production of raw materials and batteries can run well despite the dynamics in the electric vehicle industry.

"We are fortunate because the dynamics in this sector are not easy to navigate after, for example, LG from South Korea was not involved, and then other parties wanted to get involved," said Faisol.

It was previously reported that President Prabowo has approved the Huayou consortium to replace LG in the electric vehicle battery project. This had become a center of attention because the investment value is quite large, namely USD 9.8 billion.

“It has been decided by the president and upon his direction, the Huayou consortium has now been established, so it is hoped there will be no more problems. In fact, it is now ready for groundbreaking,” said Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM).

It is known that this project targets the construction of electric vehicle batteries with a capacity of 30 GWh. Along the way, LG has already built the first 10 GWh, and now 20 GWh remains, which will be continued by Huayou.

Photo : Yonhap

The investment from the project has already realized 1.2 billion US dollars or IDR 20.2 trillion, and Huayou will later fill most of the remaining investment, which reaches USD 8.6 billion or IDR 145.2 trillion.

The facility is believed to be able to make Indonesia one of the globally recognized electric vehicle producing countries.