Remarks of President of the Indonesia at the Groundbreaking Ceremony of Electric Vehicle Battery Factory PT HKML Battery Indonesia in Karawang New Industrial City, West Java Province, Wednesday 15 September 2021

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh,

Good morning,

May peace be upon us all.

Distinguished Ambassador of Republic of Korea to Indonesia Mr. Park Tae-sung:

Distinguished Ministers of Indonesia Onward Cabinet,

Coordinating Minister of Investment and Maritime Affairs,

Minister of State-owned Enterprises, Minister of Investment,

Honorable Indonesian Ambassador to Republic of Korea,

Honorable Governor of West Java and Regent of Karawang,

Honorable Chairperson of Hyundai Motor Group Mr. Chung Eui-sun,

Honorable CEO of LG Energy Solution Mr. Jonghyun Kim,

Honorable CEO of HKML Battery Indonesia Mr. William Wong,

Honorable Chairman of the Indonesian Chamber of Commerce and Industry (Kadin),

Ladies and Gentlemen,

We should be grateful that today we can witness the groundbreaking of the first electric vehicle battery factory in Indonesia and even the first in Southeast Asia with an investment of US$1.1 billion.

The factory construction serves as the proof of the Government’s seriousness in downstreaming the industry, in changing economic structure from commodity-based to industry-based. The golden era of raw material commodities has ended and we should be committed to changing economic structure from commodity-based to downstream industry, to become a strong industrial country based on technological innovation development.

Therefore, Indonesia’s key business strategy is to free itself from the trap of being raw materials exporting country immediately and not to depend on imported products by speeding up the revitalization of processing industry. So, this strategy will give more added values to the economy.

Ladies and Gentlemen,

Indonesia has the biggest nickel resource in the world. With that huge potential supported by a good management, it is estimated that in the next three or four years, Indonesia will be a major manufacturer for nickel-based products such as lithium battery, electrical battery, and electrical vehicle battery.

Nickel downstream industry will increase added value of nickel ore significantly. If nickel ore is processed into battery cell, it will increase the value six to seven times. And, if it is processed into electrical vehicle, the value will increase even more to eleven times. In addition, battery industry development will also boost the country’s attractiveness as an investment destination for derivative battery industries such as investment in electric motorcycle, electric bus, and electric car.

Ladies and Gentlemen,

The Indonesian Government is committed to providing support in developing battery and electric vehicle industry ecosystem. The Government will also encourage structural reforms to ensure legal certainty and ease of licensing for business owners and investors to develop their business in Indonesia. The Government will also welcome initiatives for cooperation with friendly countries

I hope that the cooperation between Indonesian company and South Korean company can be further strengthened, including in terms of investment cooperation in battery and electric vehicle industries.

I hope that the established collaboration will not only between big companies or our state-owned enterprises, but also between involves micro, small, and medium enterprises.

That concludes my remarks on this auspicious occasion.

And by saying bismillahirrahmanirrahim, I hereby declare the construction of electric vehicle battery factory PT HKML Battery Indonesia begin.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh. (GH/EP)