Latest news with #Aspebindo
South China Morning Post
09-05-2025
- Business
- South China Morning Post
Huayou may step in as South Korea's LG abandons US$8.45 bn Indonesia EV battery investment
LG Energy Solution (LGES) of South Korea has exited its US$8.45 billion (HK$65.7 billion) electric vehicle (EV) battery project in Indonesia, prompting the Indonesian government to court China's Zhejiang Huayou Cobalt as a potential replacement investor. Advertisement Initially launched as a joint venture between LGES and the Indonesia Battery Corporation (IBC), the project was abandoned after LGES cited shifting market dynamics and a less favourable investment climate. Indonesia's state-owned Antara news agency reported that the Energy, Mineral and Coal Suppliers Association (Aspebindo) warned LGES's exit could derail the country's EV industry road map, hinder technology transfer, and heighten the nation's dependence on imports. Aspebindo also underscored the need for Indonesia to bolster its policy framework to stay competitive amid global industrial realignments. Singapore's Nanyang Sin-Chew Lianhe Zaobao reported that Huayou is positioned to assume control of the project. Indonesia's Ministry of Energy and Mineral Resources dismissed concerns over the shift, noting that investor reshuffles are routine in major projects and reaffirming the nation's goal to become a regional EV manufacturing hub. Advertisement Huayou, however, has taken a cautious stance on the potential takeover.
South China Morning Post
04-04-2025
- Business
- South China Morning Post
Indonesia's new coal pricing rule sparks uncertainty, resistance from Chinese firms
Indonesia's decision to force coal exporters to adopt a government-set benchmark price has rattled Chinese firms – its biggest customers – and triggered warnings that the move could erode Jakarta's edge in the global market. Advertisement The regulation went into effect in March, after Indonesian Energy Minister Bahlil Lahadalia announced that coal exporters would need to start using the government's benchmark price, known as Harga Batubara Acuan (HBA). Bahlil said using the HBA would ensure that Indonesian coal was not sold internationally at prices below the local benchmark, as independent pricing agencies had significantly reduced their rates compared to Indonesia's benchmark. Historically, the government used the HBA to determine royalty fees for coal miners, while the Indonesia Coal Index was used in pricing transactions. The new policy would mean that international sales would need to align with the HBA. The Indonesian Energy, Mineral, and Coal Suppliers Association (Aspebindo) welcomed the move, with its deputy chairman Fathul Nugroho saying that adopting the HBA price would give Indonesia greater control over its coal pricing in the global market. Advertisement 'Using HBA will better reflect rising mining costs, including increasing stripping ratios, land acquisition expenses, and fuel prices,' Fathul said when the regulation was announced at the end of February.
