Remarks of President of the Republic of Indonesia at the Inauguration of Anode Material Factory for Lithium-Ion Batteries of PT Indonesia BTR New Energy Material in Kendal Special Economic Zone (SEZ), Kendal Regency, Central Java Province, August 7, 2024

Bismillahirrahmanirrahim.

Assalamu’alaikum warahmatullahi wabarakatuh,

Good morning,

May peace be upon us all,

Distinguished Coordinating Ministers, Ministers, leaders of the House of Representatives in attendance, Central Java Governor, Kendal Regent,

Distinguished Chairman of BTR New Energy Material Mr. He Xueqin and all members of the management board,

Ladies and Gentlemen.

The plan we made several years ago to develop a huge electric vehicle ecosystem has shown significant results, and it truly exists in our country, Indonesia. We began with the ban on raw nickel export in 2020, and at that time, many people from our own country opposed it because we lost approximately US$1.5 billion or around Rp20 trillion.

However, I was confident that we would have much higher added value if we stopped [exporting] raw materials. As Coordinating Minister Luhut Binsar Pandjaitan said, our nickel export value is now US$34 billion. From initially Rp33 trillion, it skyrocketed to about Rp510 trillion. It is a huge leap.

Nevertheless, once again, at the start, many parties did not agree. It was highly debated, and we were also sued by the EU, the European Union, and we lost. Let me reiterate that we are a sovereign country. The national interest is paramount to us. It cannot be dictated by anyone. I told the ministers to keep moving forward. We got sued, we lost, and we appealed. We don’t know what will happen. If we lose again, we will still have a huge industrial ecosystem of EVs and EV batteries. We will have had it.

We dream of a strong and integrated electric vehicle ecosystem, which is being manifested one by one. The smelter of nickel and its derivatives in Morowali, Weda Bay, and other locations has begun to operate. Second, in August and September, the smelter of PT Freeport and PT Amman in Sumbawa and Gresik will also begin their production. Third, the bauxite smelter in Mempawah, West Kalimantan regency. I suppose this month or next month at the latest will begin its production trial.

Therefore, once the smelters are ready to operate, the ecosystem will be built. We will be able to enter the global supply chain, which will provide a huge added value. It can also resolve employment issues and spur economic growth.

I highly appreciate the construction of this factory. Only 10 months ago we signed [the agreement] in Beijing, and now the factory [construction] has been completed. This is speed. I have said it multiple times, fast countries will defeat slow countries. We have become a fast country.

For this battery anode material factory, we import some materials. The natural graphite is imported from Africa. The artificial graphite is sourced from Pertamina, from its refinery in Riau province to be made into battery anode materials. As for the lithium-ion batteries industry, we do not have lithium. We import it from Australia. However, cobalt, manganese, and nickel are available in Indonesia. If they are all integrated and processed into semi-finished goods or finished goods, we will be a supplier in the global supply chains.

I am pleased that PT BTR, as of today, has been able to produce 80,000 tons of anode materials per year. If it is converted into cars, it can make 1.5 million electric cars. It is an enormous figure, especially with the addition of 80,000 tons of production in this industry. It means there will be three million electric cars per year. It is a great figure, so we will be the largest supplier, be it for EV batteries and EVs.

That concludes my statement. Once again, I highly appreciate the construction of this factory. Thus, the grand plan to develop an integrated and strong electric vehicle ecosystem can be realized one by one. By saying bismillahirrahmanirrahim, this morning I hereby inaugurate the Anode Factory for Lithium-Ion Batteries of PT Indonesia BTR New Energy Material in Kendal regency, Central Java province, Indonesia.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

(DH/MMB)