Investment Ministry Moves Quickly to Restructure EV Battery Project After LG's Exit
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has moved swiftly following LG's departure from the electric vehicle battery ecosystem project in Indonesia. BKPM will hold an immediate meeting with Huayou, a Chinese company, to discuss the consortium for the EV battery ecosystem project.
"We are about to meet, God willing, if not this week then next week, we will meet with Huayou to discuss and finalise matters related to this," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, as quoted by Antara on Thursday (24/4/2025).
Nurul Ichwan stated that after confirming LG's exit from the consortium, his office would develop a new design and plan the involvement of other parties in the domestic EV battery ecosystem facility.
"We will then facilitate the formation of the joint venture," he said.
Previously, Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani addressed reports of LG's cancellation of its EV battery project investment in Indonesia, valued at USD 9.8 billion.
"Indeed, LG's total investment of USD 9.8 billion is divided up — this is a substantial investment," said Rosan during a press conference at the State Palace in Jakarta on Wednesday (23/4/2025).
Rosan Roeslani emphasised that the project had not been entirely cancelled but would continue with new partners. "The news about their withdrawal does not mean a complete withdrawal — no. They have already committed to GV number 4, worth USD 1.1 billion. For a project of this scale, negotiations naturally take time, and we want this investment to proceed," he explained.
"We are about to meet, God willing, if not this week then next week, we will meet with Huayou to discuss and finalise matters related to this," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, as quoted by Antara on Thursday (24/4/2025).
Nurul Ichwan stated that after confirming LG's exit from the consortium, his office would develop a new design and plan the involvement of other parties in the domestic EV battery ecosystem facility.
"We will then facilitate the formation of the joint venture," he said.
Previously, Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani addressed reports of LG's cancellation of its EV battery project investment in Indonesia, valued at USD 9.8 billion.
"Indeed, LG's total investment of USD 9.8 billion is divided up — this is a substantial investment," said Rosan during a press conference at the State Palace in Jakarta on Wednesday (23/4/2025).
Rosan Roeslani emphasised that the project had not been entirely cancelled but would continue with new partners. "The news about their withdrawal does not mean a complete withdrawal — no. They have already committed to GV number 4, worth USD 1.1 billion. For a project of this scale, negotiations naturally take time, and we want this investment to proceed," he explained.