Volkswagen to Invest in Battery in Indonesia: Minister

TheIndonesia.id - German automotive manufacturer Volkswagen (VW) will invest in the electric vehicle battery ecosystem in Indonesia this year, Investment Minister and Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia stated.

"I had a meeting with them, yesterday. They said they would invest in Indonesia, in Sulawesi, precisely. (Thereafter, the investment is) in Batang (Central Java) for the precursor and cathode. They visited the location yesterday. Let us hope for the best," Lahadalia revealed during a press conference on exposure to investment realization as reported by Antara, Wednesday, July 20, 2022.

The BKPM head later noted that VW's investment plan certainty was still at around 60-70 percent. The VW team will also reportedly send a team to conduct further exploration.

"Later, their team will come to conduct an inspection. However, my (gut) feeling says that by God's will, the deal will be secured," he stated.

The minister also noted that VW had collaborated with nickel mining companies in Central Sulawesi to support investment in electric vehicle batteries. However, he desisted from divulging further details on this matter.

"If the question is, will VW come here, then the answer is yes, this year," he stated.

The minister highlighted the high level of interest of automotive companies and manufacturers to participate in building an electric vehicle battery ecosystem in Indonesia.

These investors include LG from South Korea, CATL from China, Foxconn from Taiwan, British Volt from the United Kingdom, and BASF and VW from Germany.

On the other hand, Lahadalia also held a meeting with an automotive company from the United States, Ford, to explore cooperation in a similar sector.

"Ford is the second car company after Tesla. Hence, people believe in our country. If people from foreign countries believe in us, then how come we do not trust our country? Many countries are interested in us. We have good stuff here," he concluded.