LG Energy Solution Plans Additional US$1.7 Billion Investment in Indonesia
JAKARTA — Investment and Downstreaming Minister and Head of the Investment Coordinating Board (BKPM) Rosan Roeslani revealed that LG Energy Solution Ltd (LGES) plans to add US$1.7 billion (approximately Rp28.49 trillion at an exchange rate of Rp16,761) in investment.
Rosan emphasised that not all LGES projects have been abandoned. LG Energy Solution withdrew from three of its four joint venture (JV) projects in the domestic electric vehicle (EV) battery supply chain, leaving one JV remaining.
"Tomorrow morning I will visit one of the locations where they have already invested, which was previously reported as not progressing. It has since resumed operations, and we are in further discussions about their expansion plans," said Rosan at the Q1 2025 investment realisation press conference on Tuesday, 29 April 2025.
Previously, LG Energy Solution had cancelled investments worth US$7.7 billion (approximately Rp129 trillion). To date, realised investment has reached US$1.1 billion. According to Rosan, the total investment by LG in the fourth JV could eventually reach US$2.8 billion (equivalent to Rp46.96 trillion).
Based on data presented by Rosan, investment realisation from South Korea through Q1 2025 reached US$683.29 million (Rp114.5 billion). South Korea ranked among the top seven countries for highest investment in Indonesia.
The expansion plans referred to by Rosan concern the Omega battery production project in Karawang. For this project, LGES and Hyundai formed a consortium, PT Hyundai LG Indonesia (HLI) Green Power. In the first phase, PT HLI absorbed US$1.1 billion in investment with a production capacity of 10 gigawatt-hours (GWh), comprising 32.6 million battery cells capable of powering approximately 150,000 electric vehicles. In the second phase, expected in 2025, PT HLI plans to increase production capacity to 20 GWh.
Q1 2025 Investment Realisation Reaches Rp465.2 Trillion
The Ministry of Investment and Downstreaming/BKPM reported that investment realisation through Q1 2025 reached Rp465.2 trillion, growing 15.9% compared with the same period in 2024 (YoY). The Danantara chief also noted that Indonesian workforce absorption reached 594,104 people, up 8.5% year-on-year.
Foreign Direct Investment (FDI) during this period reached Rp230.4 trillion, accounting for 49.5% of total investment, whilst Domestic Direct Investment (DDI) reached Rp234.8 trillion at 50.5%.
By country of origin for foreign investment, Singapore maintained the top position with US$4.6 billion, followed by Hong Kong at US$2.2 billion, China at US$1.8 billion, Malaysia at US$1 billion, and Japan at US$1 billion.
Rosan emphasised that not all LGES projects have been abandoned. LG Energy Solution withdrew from three of its four joint venture (JV) projects in the domestic electric vehicle (EV) battery supply chain, leaving one JV remaining.
"Tomorrow morning I will visit one of the locations where they have already invested, which was previously reported as not progressing. It has since resumed operations, and we are in further discussions about their expansion plans," said Rosan at the Q1 2025 investment realisation press conference on Tuesday, 29 April 2025.
Previously, LG Energy Solution had cancelled investments worth US$7.7 billion (approximately Rp129 trillion). To date, realised investment has reached US$1.1 billion. According to Rosan, the total investment by LG in the fourth JV could eventually reach US$2.8 billion (equivalent to Rp46.96 trillion).
Based on data presented by Rosan, investment realisation from South Korea through Q1 2025 reached US$683.29 million (Rp114.5 billion). South Korea ranked among the top seven countries for highest investment in Indonesia.
The expansion plans referred to by Rosan concern the Omega battery production project in Karawang. For this project, LGES and Hyundai formed a consortium, PT Hyundai LG Indonesia (HLI) Green Power. In the first phase, PT HLI absorbed US$1.1 billion in investment with a production capacity of 10 gigawatt-hours (GWh), comprising 32.6 million battery cells capable of powering approximately 150,000 electric vehicles. In the second phase, expected in 2025, PT HLI plans to increase production capacity to 20 GWh.
Q1 2025 Investment Realisation Reaches Rp465.2 Trillion
The Ministry of Investment and Downstreaming/BKPM reported that investment realisation through Q1 2025 reached Rp465.2 trillion, growing 15.9% compared with the same period in 2024 (YoY). The Danantara chief also noted that Indonesian workforce absorption reached 594,104 people, up 8.5% year-on-year.
Foreign Direct Investment (FDI) during this period reached Rp230.4 trillion, accounting for 49.5% of total investment, whilst Domestic Direct Investment (DDI) reached Rp234.8 trillion at 50.5%.
By country of origin for foreign investment, Singapore maintained the top position with US$4.6 billion, followed by Hong Kong at US$2.2 billion, China at US$1.8 billion, Malaysia at US$1 billion, and Japan at US$1 billion.