Statement of President of the Republic of Indonesia during Inspection to Batang Integrated Industrial Estate in Batang Regency, Central Java Province, June 8, 2022

President of the Republic of Indonesia (Joko Widodo)
We started this two years ago. What we see today, the construction of all the factories has begun, albeit only eight percent progress. However, the construction has already started.

First of all, we will prepare an area of 450 hectares, all of which has been planned for glass factories, pipe factories, electric battery factories, and ceramic factories, all of them. Indeed, these are giant industries so it is crucial that they can create huge job opportunities

Second, state revenues will also increase in the form of tax including VAT, income tax of employee and corporate, as well as non-tax revenue. The state revenues will increase.

Third, in relation to our trade balance, it will benefit the trade balance because almost all of their orientation is for export.  We want to keep creating these kind of business models not only in Central Java province but also in West Java province as well as other provinces. I think this is a good example.

Journalist
Also earlier, you had the opportunity to ride the EV car, Sir. Would you share it with us?

President of the Republic of Indonesia (Joko Widodo)
We want to establish a large end-to-end ecosystem, from upstream to downstream for electric vehicles. From nickel mining, smelter, refinery, establishment of cathode and precursor industries, to lithium batteries for the EV and the cars. In addition to the car, there is also the recycling process of the electric battery. From upstream to downstream, we want everything in a large ecosystem. We want to work on that.

I have the opportunity to try Genesis, an electric car from Hyundai. I notice the vehicle is smooth and noiseless.

Journalist
Regarding this, Sir.  Many of our people still complain that EV cars will be expensive. What is your response, Sir?

President of the Republic of Indonesia (Joko Widodo)
It is understandable for first purchase. However, because half of its price is the cost for the battery so if we find the latest technology, find the newest technology, the price of the battery will be cheaper and cheaper. Moreover, if the car is manufactured in Indonesia, where we have the nickle and the cobalt, everything will be done from upstream to downstream, so we will be able to reduce cost to the lowest and make it competitive. This is a matter of technology.

Journalist
Thank you, Sir.

(FI/LW)