JAKARTA— The Ministry of State-Owned Enterprises (BUMN) announced the establishment of a battery company named Indonesia Battery Corporation (IBC). The investment for this holding is IDR 238 trillion. Indonesia Battery Corporation was established by four state-owned companies, including Mining and Industry Indonesia (Mind Id), PT Pertamina, PT Perusahaan Listrik Negara (PLN), and PT Aneka Tambang (Antam). Each BUMN owns a 25 percent stake in IBC.
“This year, we will start investing in battery cell development. This will directly (involve) four (BUMN) in the IBC to invest in a battery manufacturing plant, ”said Pahala Nugraha Mansury (Deputy Minister of BUMN) as quoted by Kompas,Monday, March 29, 2021.
The IBC is expected to have a real economic impact in the period 2021-2023, because it currently requires a period of post-pandemic economic recovery. The battery development company is targeted to have a production capacity of up to 140 gigawatt hours (GWh) by 2030. He estimates that 50 GWh of the battery cells produced by IBC will be exported abroad, while the rest will be used in the battery industry which later produces electric vehicles in Indonesia.
“We want to create economic added value in the mining and energy industries, especially nickel, which is the main ingredient in EV batteries, develop the electric vehicle industry ecosystem, and contribute to sustainable development goals.” In addition, large-scale investments like this will open up many jobs, especially for our younger generations, ”said BUMN Minister Erick Thohir at a press conference for the establishment of the IBC, Friday, March 26, 2021, as quoted by CNBC.
The signing of the shareholders’ agreement was held on March 16, 2021 by the four BUMNs. Regarding investment, IBC requires funding of 17 billion US dollars or equivalent to Rp 238 trillion for factory construction to business integration from upstream to downstream. Each state-owned company involved in the IBC has their respective responsibilities. Mind Id and Antam will be responsible for mining and processing raw minerals. Pertamina and PLN will play a role in the manufacture of battery cells and battery packs, as well as the construction of Public Electric Vehicle Charging Stations (SPKLU) in Indonesia.
IBC will also work with technology companies and global markets to form joint ventures engaged in the electric vehicle battery industry value chain, from nickel processing, precursor and cathode materials, to battery cells, packs, energy storage system (ESS), and recycling. . To date, several global companies engaged in the electric vehicle battery industry have explored various countries, such as China, Japan, South Korea, the United States (US), and Europe. (*)