JAKARTA: President Prabowo Subianto (pic) said on Tuesday (April 22) that there was no reason to be concerned about LG Energy Solution's (LGES) decision to withdraw from a Rp 142 trillion (US$8.45 billion) project to develop electric vehicle battery making in Indonesia.
Prabowo told reporters that Indonesia is a big country with a bright future and there would be new investment to take the place of the South Korean company in the EV battery ecosystem.
"Of course [there will be new investment]. Indonesia is a big country. Indonesia's [future] is bright," President said with a chuckle.
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LGES and the government signed a deal on the so-called Indonesia Grand Package project in late 2020, which includes investments across the EV battery supply chain in the country.
"Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia GP [Grand Package] project," LGES said in a statement.
Indonesia will continue to seek foreign investors to partner with local companies to develop the battery industry, leveraging the country's rich nickel reserves, an official at the Energy and Mineral Resources Ministry has said.
"Even though LG has exited, Indonesia remains convinced our nickel is more competitive than other countries," the director general for mineral and coal development told reporters.
Indonesian state-owned miner Aneka Tambang, which had planned to form a JV with LGES to mine nickel, said it remained committed to working with other companies to supply nickel for battery production. - The Jakarta Post/ANN
