Investment Minister Reveals Government Decision Behind LG's Departure from Electric Vehicle Battery Consortium
JAKARTA - Investment Minister and Head of BKPM Rosan Perkasa Roeslani has spoken out regarding LG's departure from the electric vehicle battery project consortium in Indonesia. Rosan said that the decision for LG to withdraw 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.
"More precisely, it was we who decided, based on the letter dated 31 January 2025 issued by the Ministry of Energy and Mineral Resources," said Rosan, as quoted on Thursday, 24 April.
The decision was taken because negotiations between Indonesia and LG, which had lasted five years, had not yielded significant results.
"The negotiations had been going on for too long, while we wanted this to proceed smoothly given the five years of discussions. It cannot remain a drawn-out project," Rosan continued.
The government therefore took the initiative to issue a letter terminating the cooperation, which was immediately sent to the CEOs of LG Chem 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 had been apparent since 2024.
"We have met with Huayou — I have met with them because they have been very positive since 2024 and have expressed interest in joining the consortium in place of LG," said Rosan.
"More precisely, it was we who decided, based on the letter dated 31 January 2025 issued by the Ministry of Energy and Mineral Resources," said Rosan, as quoted on Thursday, 24 April.
The decision was taken because negotiations between Indonesia and LG, which had lasted five years, had not yielded significant results.
"The negotiations had been going on for too long, while we wanted this to proceed smoothly given the five years of discussions. It cannot remain a drawn-out project," Rosan continued.
The government therefore took the initiative to issue a letter terminating the cooperation, which was immediately sent to the CEOs of LG Chem 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 had been apparent since 2024.
"We have met with Huayou — I have met with them because they have been very positive since 2024 and have expressed interest in joining the consortium in place of LG," said Rosan.