Report from Switzerland: Investment Coordinating Board boosts investment in electric vehicle ecosystem
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Laporan dari Swiss: BKPM dorong investasi ekosistem kendaraan listrik
21 January 2023
By: Ana Noviani
Indonesia’s ambition to build an electric vehicle battery ecosystem in Indonesia is starting to receive a positive signal from potential investors. The Investment Coordinating Board (BKPM) logged that several global and international investors were starting to seek out strategic cooperation.
Investment Minister/BKPM Head Bahlil Lahadalia affirmed that the Indonesian government was focused on creating added value through downstreaming that is oriented on energy and green industry.
He said that the direction of the Indonesian government’s strategic investment downstreaming policy was not only for nickel resources, but also for 8 other priority sectors, namely mineral, coal, oil, natural gas, plantation, marine, fishery, and forestry with 21 commodities. The policy has been implemented and the investment value is planned to reach US$545.3 billion in 2035.
“Indonesia will be the only country in Southeast Asia that focuses on creating added value in their own country. All of it has been implemented and commenced. We invite investors to come by bringing technology, capital, and some of the market,” he said at Indonesia Pavilion in Davos, Switzerland on Wednesday (18/1).
One of the sectors where investment is boosted is the electric vehicle battery ecosystem in Indonesia. Regarding that potential, Bahlil mentioned that a national investor recently signed a memorandum of understanding (MoU) to enter the electric vehicle battery industry.
“Yesterday, Envision signed an MoU with national businesses [in Indo-pacific Net Zero Battery-Materials Consortium]. Envision, which will re-enter Indonesia,” he said on Thursday (19/1).
On Wednesday (18/1), Bahlil with Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan and State-owned Enterprises (SOE) Deputy Minister II Kartika Wirjoatmodjo attended a ceremony for the signing of the MoU for Indo-Pacific Net Zero Battery-Materials Consortium (INBC) to join the initiative for industrial cluster transition towards net zero initiated by World Economic Forum (WEF). Three business entities from the private sector involved in the MoU are Bakrie & Brothers, Envision Group, and Gencore plc.
“The collaboration among SOEs, national businesses, Envision, and Glencore will enter [the electric vehicle battery ecosystem]. Yesterday, the MoU has been signed,” Bahlil added.
PT Bakrie & Brothers Tbk (BNBR) is the parent entity of Bakrie Group that engages in the automotive component, building material, infrastructure, and metal construction service business lines.
BNBR also engages in the electric bus development sector through PT Vektor Mobiliti Indonesia, which is a subsidiary of Bakrie Autoparts. Meanwhile, Envision Group and Glencore plc. are two leading global companies. Envision Group is a global leading eco-friendly technology company and a net-zero technology partner.
Meanwhile Glencore plc. is a mine commodity company from Switzerland that focuses on copper, zinc, aluminium, nickel, and cobalt. The MoU signing was attended by CEO of Bakrie & Brothers Anindya Novyan Bakrie, CEO of Envision Group Lei Zhang, and CEO of Glencore plc. Gary Nagle.
According to Anindya, INBC will accelerate the construction of battery giga factories in several countries.
“We take part in the global electric vehicle supply chain in an end-to-end manner, starting with Indonesia and the UK. We will position INBC as an alternative for nickel and battery raw materials that are processed using the ESG principle,” he said.
