Remarks of President of the Republic of Indonesia at the Inauguration of the Implementation Ceremony of the Second Development Phase of the Integrated Electric Battery Industry, in the Batang Industrial Estate (KITB), Batang Regency, Central Java Province, June 8, 2022
Assalamu’alaikum warahmatullahi wabarakatuh,
Distinguished Ministers of the Indonesia Onward Cabinet joining us today,
Distinguished Ambassador of the Republic of Korea to Indonesia [His Excellency Park Tae-Sung]
Distinguished Governor of Central Java and spouse,
Distinguished Regent of Batang,
Distinguished President of LG Energy Solution Lee Bang Soo,
Distinguished Directors of State-Owned Enterprises’ and LG’s consortium,
Ladies and Gentlemen,
Today, I am proud that the development phase of the integrated electric battery industry has started. The investment of LG is the world’s first investment that will integrate upstream and downstream production process of electric vehicles (EV), including nickel mining, smelter facility, precursor factory, cathode factory, electric batteries production, battery packs production, EV production, as well as battery recycling industry.
From upstream to downstream, end-to-end process, all is done through this investment.
I would like to extend my gratitude to LG’s consortium that has collaborated with state-owned enterprises, private companies in Indonesia. Thanks to the hard work, today we can commence the development phase.
The total amount of the investment is not a pittance. It is worth Rp142 trillion or US$9.8 billion. And I am pleased that there will be 20,000 people that can be employed. It is not a small amount. All around the world, job creation is the key.
I am also glad that the investment that integrates upstream and downstream production is spread in several areas across Indonesia. Mining and smelter facility are located in Halmahera, North Maluku province. Nickel refinery factory, precursor factory, and cathode factory are located in the KITB in Central Java province. Under-construction battery factory is located in Karawang, West Java province. While the EV factory is located in Cikarang, West Java province. It is a good investment considering the location is not only in Java island, but also outside Java island.
As a country with world’s largest nickel reserves, it is our hope that Indonesia will become a major manufacturing country for nickel-based products. It is our hope. That’s why we have stopped nickel export. The export ban will be continued by stopping raw materials of bauxite export so that Indonesia can produce finished aluminium-based products.
Once again, I reiterate that Indonesia will become a major manufacturing country for nickel-based products, including lithium battery, electric battery, battery of EV. It is a great opportunity, a golden opportunity to build green economy in the future as we have planned before.
I order all ranks of the Central Government and regional governments to fully support this project so that it will immediately be realized.
In addition to the recruitment of 20,000 people, other benefits this investment offer are that Indonesia will gain more revenues including companies’ income tax, employees’ income tax, and non-tax revenue. It will also strengthen Indonesia’s balance of trade although the balance recorded a surplus for 20 months. We hope it will trigger a new economic growth.
That concludes my speech on this auspicious occasion.
Once again, I would like to thank LG’s consortium and state-owned Enterprises’ consortium for the hard work.
Wassalamu’alaikum warahmatullahi wabarakatuh.
By saying bismillahirrahmanirrahim, today I officially inaugurate the Second Development Phase of the Integrated Electric Battery Industry of LG’s and State-Owned Enterprises’ Consortium.
I thank you.