Indonesia Terminated LG Battery Project Partnership, Says Investment Minister
JAKARTA - Investment Minister/BKPM Head Rosan Perkasa Roeslani has spoken out regarding LG's departure from the electric vehicle battery project consortium in Indonesia. Rosan stated that the decision to remove LG from the Titan project was made by the Indonesian Government through a letter issued by the Ministry of Energy and Mineral Resources (ESDM) on 31 January.
"It would be more accurate to say that we were the ones who terminated it, based on the 31 January 2025 letter issued by the Ministry of ESDM," said Rosan, as quoted on Thursday, 24 April.
The decision was taken because negotiations between Indonesia and LG had been ongoing for five years without yielding significant results. "The negotiations had gone on for far too long, whereas we want this to proceed well — five years of negotiations. A project can't take that long," Rosan added.
As a result, the government took the initiative to issue a termination of cooperation letter, which was sent directly to LG CEO Cheem and LG Energy Solution.
He added that the letter was also issued because Chinese investor Huayou had expressed its desire to invest in the battery ecosystem sector. Huayou's interest in joining the battery project consortium in Indonesia was first conveyed in 2024.
"We have already met with Huayou — I have met with them personally because they have been very positive. Since 2024, they have expressed their interest in joining the LG consortium," Rosan affirmed.
"It would be more accurate to say that we were the ones who terminated it, based on the 31 January 2025 letter issued by the Ministry of ESDM," said Rosan, as quoted on Thursday, 24 April.
The decision was taken because negotiations between Indonesia and LG had been ongoing for five years without yielding significant results. "The negotiations had gone on for far too long, whereas we want this to proceed well — five years of negotiations. A project can't take that long," Rosan added.
As a result, the government took the initiative to issue a termination of cooperation letter, which was sent directly to LG CEO Cheem and LG Energy Solution.
He added that the letter was also issued because Chinese investor Huayou had expressed its desire to invest in the battery ecosystem sector. Huayou's interest in joining the battery project consortium in Indonesia was first conveyed in 2024.
"We have already met with Huayou — I have met with them personally because they have been very positive. Since 2024, they have expressed their interest in joining the LG consortium," Rosan affirmed.