Prabowo Approves Huayou to Replace LG in Battery Investment, Groundbreaking Ready
Jakarta, VIVA – Minister of Energy and Mineral Resources Bahlil Lahadalia stated that President Prabowo Subianto has approved the continuation of Indonesia's US$9.8 billion electric vehicle battery ecosystem development project by Chinese company Huayou.
Bahlil disclosed this after attending a limited cabinet meeting with President Prabowo Subianto at the Merdeka Palace on Thursday, 22 May 2025. Also present were State-Owned Enterprises Minister Erick Thohir, Coordinating Minister for Economic Affairs Airlangga Hartarto, Investment and Downstream Industries Minister/BKPM Head and Danantara CEO Rosan Roeslani, and COO Dony Oskaria.
"The president has made the decision and, under his direction, the Huayou consortium is now proceeding. There are no more issues. The groundbreaking is ready to go," said Bahlil at a press conference.
The meeting also discussed progress on a cooperation project with Chinese battery company CATL. Investment and Downstream Industries Minister/BKPM Head and Danantara Chief Rosan Roeslani emphasised the importance of Danantara's involvement in strengthening Indonesia's position in the project.
"Previously there may have been funding constraints. But since Danantara was established, we have been assisting with the funding because we see this project as extremely promising — both in terms of returns, job creation, and its future economic impact for Indonesia," said Rosan.
Rosan revealed that Chinese firm Huayou Group plans to invest a total of US$20 billion in Indonesia. He noted that Huayou has already realised US$8.8 billion in investment in the country to date.
"They have indicated that the potential for future investment from the Huayou group could reach an additional US$20 billion, according to their calculations," said Rosan at a press conference on Tuesday, 29 April 2025.
Rosan explained that Huayou would present its additional investment plans in greater detail during the third week of May 2025. The investment will encompass two main projects: continuing the cooperation on the former LG project and developing a new project entirely initiated by Huayou.
Bahlil disclosed this after attending a limited cabinet meeting with President Prabowo Subianto at the Merdeka Palace on Thursday, 22 May 2025. Also present were State-Owned Enterprises Minister Erick Thohir, Coordinating Minister for Economic Affairs Airlangga Hartarto, Investment and Downstream Industries Minister/BKPM Head and Danantara CEO Rosan Roeslani, and COO Dony Oskaria.
"The president has made the decision and, under his direction, the Huayou consortium is now proceeding. There are no more issues. The groundbreaking is ready to go," said Bahlil at a press conference.
The meeting also discussed progress on a cooperation project with Chinese battery company CATL. Investment and Downstream Industries Minister/BKPM Head and Danantara Chief Rosan Roeslani emphasised the importance of Danantara's involvement in strengthening Indonesia's position in the project.
"Previously there may have been funding constraints. But since Danantara was established, we have been assisting with the funding because we see this project as extremely promising — both in terms of returns, job creation, and its future economic impact for Indonesia," said Rosan.
Rosan revealed that Chinese firm Huayou Group plans to invest a total of US$20 billion in Indonesia. He noted that Huayou has already realised US$8.8 billion in investment in the country to date.
"They have indicated that the potential for future investment from the Huayou group could reach an additional US$20 billion, according to their calculations," said Rosan at a press conference on Tuesday, 29 April 2025.
Rosan explained that Huayou would present its additional investment plans in greater detail during the third week of May 2025. The investment will encompass two main projects: continuing the cooperation on the former LG project and developing a new project entirely initiated by Huayou.