Indonesian Government Yet to Officially Respond to LG Consortium's Cancellation of Rp130 Trillion Battery Investment
JAKARTA, KOMPAS.TV - The Indonesian government has yet to issue an official statement regarding reports that a South Korean consortium led by LG has cancelled a massive investment worth Rp130 trillion. Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung stated that his office would first need to study the cancellation of the electric vehicle battery ecosystem investment.
"I do not yet know precisely how far the investment withdrawal has progressed. I will check first, as coordination on this matter falls under the Ministry of Investment/Investment Coordinating Board (BKPM)," said Yuliot on Monday (21/4/2025), as quoted by Kompas.id.
As of the time of reporting, there had also been no statement from the Ministry of Investment/BKPM.
Separately, Corporate Secretary of PT Aneka Tambang Tbk (Antam) Faisal Alkadrie affirmed that Indonesia would remain a primary destination for electric battery investment. The electric battery development project in Indonesia involves a broad range of stakeholders, including Antam as a nickel raw material supplier. To date, Antam remains committed to its strategic plan for nickel downstream development, including collaboration with other potential partners.
"Indonesia remains a primary destination for electric battery investment due to its nickel wealth and policy support. Several other investors such as CBL (Ningbo Contemporary Brunp Lygend) are still actively developing similar projects," said Faisal, as reported by Kompas.id on Monday.
As reported by South Korean media outlet Yonhap News Agency on Friday (19/4/2025), the consortium comprised LG Energy Solution, LG Chem, LX International Corp., and several other partners. They had previously been exploring cooperation with the Indonesian government to build an electric vehicle (EV) ecosystem, creating a fully integrated EV battery supply chain ranging from raw material procurement, precursor production, and cathode material to battery cell manufacturing.
The consortium had targeted Indonesia due to its possession of the world's largest nickel reserves, a key raw material for EV battery production. However, a source disclosed to Yonhap that the consortium decided to officially halt the project after consulting with the Indonesian government.
"The decision was taken due to changes in the industry landscape, particularly the phenomenon known as the 'EV chasm', a temporary slowdown in global electric vehicle demand," Yonhap wrote in its report.
"Considering current market conditions and the investment environment, we decided to exit this project," said an LG Energy Solution official.
However, the source stated that LG has not withdrawn all of its investments from Indonesia. One remaining venture is the electric vehicle battery factory PT Hyundai LG Industry (HLI) Green Power in Karawang Regency, West Java Province.
"I do not yet know precisely how far the investment withdrawal has progressed. I will check first, as coordination on this matter falls under the Ministry of Investment/Investment Coordinating Board (BKPM)," said Yuliot on Monday (21/4/2025), as quoted by Kompas.id.
As of the time of reporting, there had also been no statement from the Ministry of Investment/BKPM.
Separately, Corporate Secretary of PT Aneka Tambang Tbk (Antam) Faisal Alkadrie affirmed that Indonesia would remain a primary destination for electric battery investment. The electric battery development project in Indonesia involves a broad range of stakeholders, including Antam as a nickel raw material supplier. To date, Antam remains committed to its strategic plan for nickel downstream development, including collaboration with other potential partners.
"Indonesia remains a primary destination for electric battery investment due to its nickel wealth and policy support. Several other investors such as CBL (Ningbo Contemporary Brunp Lygend) are still actively developing similar projects," said Faisal, as reported by Kompas.id on Monday.
As reported by South Korean media outlet Yonhap News Agency on Friday (19/4/2025), the consortium comprised LG Energy Solution, LG Chem, LX International Corp., and several other partners. They had previously been exploring cooperation with the Indonesian government to build an electric vehicle (EV) ecosystem, creating a fully integrated EV battery supply chain ranging from raw material procurement, precursor production, and cathode material to battery cell manufacturing.
The consortium had targeted Indonesia due to its possession of the world's largest nickel reserves, a key raw material for EV battery production. However, a source disclosed to Yonhap that the consortium decided to officially halt the project after consulting with the Indonesian government.
"The decision was taken due to changes in the industry landscape, particularly the phenomenon known as the 'EV chasm', a temporary slowdown in global electric vehicle demand," Yonhap wrote in its report.
"Considering current market conditions and the investment environment, we decided to exit this project," said an LG Energy Solution official.
However, the source stated that LG has not withdrawn all of its investments from Indonesia. One remaining venture is the electric vehicle battery factory PT Hyundai LG Industry (HLI) Green Power in Karawang Regency, West Java Province.