Investment Minister Denies LG Energy Solution Fully Withdrew from Indonesia's US$9.8 Billion Battery Project
Jakarta, CNBC Indonesia — Investment Minister and Head of the Investment Coordinating Board (BKPM) Rosan Roeslani has denied reports that South Korean company LG Energy Solution has entirely withdrawn from its investment in Indonesia, particularly regarding the US$9.8 billion (approximately Rp165.3 trillion) electric vehicle battery project.
Rosan stated that LG had only withdrawn from a portion of the projects planned since the partnership began in 2020. The agreement encompassed four joint venture (JV) plans involving various production stages, from nickel mining to battery recycling.
"It was divided into four JVs, and they have already broken ground and completed JV number four. So the news about them withdrawing — it wasn't a complete withdrawal. They have already completed JV number four, valued at US$1.1 billion," Rosan said at the Presidential Office in Jakarta on Thursday (24 April 2025).
He emphasised that the decision not to proceed with all joint projects with LG did not originate entirely from the Korean company. According to Rosan, Energy and Mineral Resources Minister Bahlil Lahadalia was the one who first decided to halt further negotiations with LG and opted to pursue the project with other partners.
"Minister Bahlil has already conveyed this. Perhaps I should add that it was said the decision came from their side, but more accurately, it was we who made the decision," Rosan said.
Rosan explained this was based on a letter issued by the Ministry of Energy and Mineral Resources dated 31 January 2025. The reason was that negotiations with LG had dragged on for too long, whilst Indonesia wanted the project to proceed as quickly as possible.
"The negotiations have gone on for far too long, whereas we want everything to run well and quickly, as negotiations have been ongoing for five years," Rosan said. "A project cannot be left stalled for that long. That is why Minister Bahlil issued a letter sent to the CEOs of both LG Chem and LG Energy Solution," he added.
Following LG's withdrawal from the US$9.8 billion project, Rosan confirmed that the project would be led by Huayou, a Chinese company that was already part of the project consortium. According to the former Indonesian Chamber of Commerce and Industry chairman, Huayou had expressed interest in joining the consortium since 2024.
"The total investment remains unchanged at US$9.8 billion. Huayou has already invested in Indonesia previously, in a nearly identical field," Rosan said.
In addition to Huayou, Rosan revealed that other companies set to replace LG in the project include Indonesia Battery Corporation and PT Aneka Tambang (Persero) Tbk.
"Huayou was actually already part of the LG consortium. They are now simply taking the lead in the consortium — that is all," he said.
Rosan stated that LG had only withdrawn from a portion of the projects planned since the partnership began in 2020. The agreement encompassed four joint venture (JV) plans involving various production stages, from nickel mining to battery recycling.
"It was divided into four JVs, and they have already broken ground and completed JV number four. So the news about them withdrawing — it wasn't a complete withdrawal. They have already completed JV number four, valued at US$1.1 billion," Rosan said at the Presidential Office in Jakarta on Thursday (24 April 2025).
He emphasised that the decision not to proceed with all joint projects with LG did not originate entirely from the Korean company. According to Rosan, Energy and Mineral Resources Minister Bahlil Lahadalia was the one who first decided to halt further negotiations with LG and opted to pursue the project with other partners.
"Minister Bahlil has already conveyed this. Perhaps I should add that it was said the decision came from their side, but more accurately, it was we who made the decision," Rosan said.
Rosan explained this was based on a letter issued by the Ministry of Energy and Mineral Resources dated 31 January 2025. The reason was that negotiations with LG had dragged on for too long, whilst Indonesia wanted the project to proceed as quickly as possible.
"The negotiations have gone on for far too long, whereas we want everything to run well and quickly, as negotiations have been ongoing for five years," Rosan said. "A project cannot be left stalled for that long. That is why Minister Bahlil issued a letter sent to the CEOs of both LG Chem and LG Energy Solution," he added.
Following LG's withdrawal from the US$9.8 billion project, Rosan confirmed that the project would be led by Huayou, a Chinese company that was already part of the project consortium. According to the former Indonesian Chamber of Commerce and Industry chairman, Huayou had expressed interest in joining the consortium since 2024.
"The total investment remains unchanged at US$9.8 billion. Huayou has already invested in Indonesia previously, in a nearly identical field," Rosan said.
In addition to Huayou, Rosan revealed that other companies set to replace LG in the project include Indonesia Battery Corporation and PT Aneka Tambang (Persero) Tbk.
"Huayou was actually already part of the LG consortium. They are now simply taking the lead in the consortium — that is all," he said.