LG's Withdrawal from EV Battery Project Due to Global Market Factors, Not Indonesia: IBC
Jakarta (ANTARA) - The Indonesian Business Council (IBC) has stated that the cancellation of South Korean company LG's investment in part of the electric vehicle (EV) battery consortium Grand Package project in Indonesia was not due to domestic dynamics, but rather global market factors.
IBC Supervisory Board Chairman Arsjad Rasjid, speaking in Jakarta on Friday, explained that the global EV market is currently dominated by Chinese automotive company BYD, meaning LG, which supplies batteries for vehicles made by fellow South Korean manufacturer Hyundai, must compete on a global scale.
"So it is not necessarily because of Indonesia," he said.
According to him, LG's plan to build an EV battery manufacturing facility in Indonesia was intended to supply the global market, but this has not aligned with current market conditions.
"That is the reality — so this is not a challenge faced by Indonesia alone, but by the world," he added.
Previously, the South Korean consortium led by LG decided to withdraw from a project worth approximately 11 trillion won (Rp130.7 trillion) to build an EV battery supply chain in Indonesia. The consortium, which includes LG Energy Solution, LG Chem, LX International Corp, and other partners, had been working with the Indonesian government and several state-owned enterprises to build a "comprehensive value chain" for EV batteries.
IBC Supervisory Board Chairman Arsjad Rasjid, speaking in Jakarta on Friday, explained that the global EV market is currently dominated by Chinese automotive company BYD, meaning LG, which supplies batteries for vehicles made by fellow South Korean manufacturer Hyundai, must compete on a global scale.
"So it is not necessarily because of Indonesia," he said.
According to him, LG's plan to build an EV battery manufacturing facility in Indonesia was intended to supply the global market, but this has not aligned with current market conditions.
"That is the reality — so this is not a challenge faced by Indonesia alone, but by the world," he added.
Previously, the South Korean consortium led by LG decided to withdraw from a project worth approximately 11 trillion won (Rp130.7 trillion) to build an EV battery supply chain in Indonesia. The consortium, which includes LG Energy Solution, LG Chem, LX International Corp, and other partners, had been working with the Indonesian government and several state-owned enterprises to build a "comprehensive value chain" for EV batteries.