Replacing LG, Huayou to Invest IDR 145.2 Trillion

KatadataOTO – Coming in as a replacement for LG, Huayou must make a significant investment. They were also asked to work faster.

Rosan Roeslani, from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), revealed that the project is valued at USD 9.8 billion or IDR 165.5 trillion. However, Huayou will fill the remaining investment of USD 8.6 billion or IDR 145.2 trillion.

“Their investment value is at least USD 8.6 billion,” said Rosan Roeslani, as reported by Antara (24/04).

This figure was reached because the EV battery project, named the Indonesia Grand Package, has already realized USD 1.2 billion or IDR 20.2 trillion. Thus, Huayou is responsible for filling the majority of the remaining investment, which amounts to USD 8.6 billion.

Photo : Special

“Huayou is not alone; they will certainly cooperate with other partners later. But what is clear is that they will have a contribution in almost the entire ecosystem,” said Nurul Ichwan, Deputy for Investment Promotion at BKPM.

It was previously reported that LG Energy Solution withdrew from the battery ecosystem development project. This was despite the South Korean manufacturer having previously committed to investing in the project, which was signed in 2020.

In the project, the entire electric car battery production process, from raw material supply to finished goods manufacturing,

However, the government later revealed that the company was actually asked to withdraw because the development was considered slow. The numerous negotiation efforts made the work take longer than it should have.

Nevertheless, LG still managed to realize its investment in one of its joint venture projects, valued at USD 1.1 billion or around IDR 18.56 trillion.

Photo : Special

Meanwhile, Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM), revealed that a change of investors midway is normal when working on large-scale projects.

“For us, the most important thing is that all partners remain committed and the government is present to ensure the transition process runs smoothly. The project is already underway, some parts have even been inaugurated and started production, while the rest will be overseen until completion according to the target,” he affirmed.