Latest news with #IndonesiaGrandPackage
The Star
29-04-2025
- Business
- The Star
Mining companies court US investments
Trade relations: Crane operators unload a container from a truck at the International Container Terminal at Tanjung Priok Port in Jakarta. The government is being asked to reduce complicated bureaucracy to improve the attractiveness of investment. — AP JAKARTA: Mining state-owned enterprises (SOEs) are looking at partnerships with United States firms, which they hope could help Indonesia navigate US tariff policies, while seeking the investments needed to build downstream projects in the archipelago. State mining holding company MIND ID said it would offer an electric vehicle (EV) battery project, dubbed the Indonesia iGrand Package, to US investors after South Korea's LG Energy Solution, one of the early backers of the project, decided to exit the venture. The move aligns with recent efforts to balance trade relations with Washington, MIND ID's portfolio and business development director Dilo Seno Widagdo said. Mutya Yustika, an energy economist at the Institute for Energy Economics and Financial Analysis, said Indonesia should address several challenges in improving the investment climate to secure foreign direct investment. 'Although Indonesia has great potential in mining downstream projects, attracting investors in general remains a challenge because the project has a fairly high investment risk,' she said. Mutya stressed the importance of addressing complicated bureaucracy and regulatory uncertainty to improve the country's attractiveness as an investment destination. 'Strengthening the environment, social and governance regulations is also critical to attract investors and sustain downstream projects in the country.' Putra Adhiguna, managing director of the Energy Shift Institute, said that the success of these initiatives hinged on the commercial viability of the projects and good management practices within the SOEs. The government needs to introduce reform to its regulations and legal certainty before more local companies, particularly SOEs, look for partnerships with US companies in developing the domestic downstream industry. Indonesia Battery Corp's (IBC) commercial and marketing vice-president, Bayu Hermawan, said the state-owned battery company has spent the last two to three years engaged with various potential investors, including US firms, to join the megaproject. 'We are still exploring the value propositions that both sides can offer,' Bayu said on the sidelines of the RE Invest Indonesia 2025 forum. In addition to the United States, IBC is in discussions with potential partners from Europe, Australia, Japan and China. The search for new investors marks a critical juncture for Indonesia's EV ambitions as it seeks to build a robust domestic supply chain and position itself as a global EV manufacturing hub. LG announced on April 21 that it would withdraw from the Indonesia Grand Package project, citing factors such as market conditions and the investment climate as the reason behind the withdrawal. The South Korean company had originally planned to invest about US$2bil and comply with local rules, including domestic content, to support Hyundai's Ioniq Electric. Experts had previously suggested LG's departure may be due to the Indonesian market being seen as already dominated by Lithium Iron Phosphate (LFP) batteries, which does not contain nickel, the key commodity in the Grand Package battery project. LFP batteries are predominantly used by Chinese EV companies that also dominate the local electric vehicle market. Centre of Economic and Law Studies executive director Bhima Yudhistira said on Monday that Indonesian minerals have the potential to become leverage in dealing with US tariffs. He cited nickel that the United States can source from Indonesia after Washington barred American firms from procuring Russian nickel following the invasion of Ukraine. 'The government could facilitate SOEs and local firms to partner with the United States, including in smelting businesses, but this should also come with commitments to improve domestic mining standards to meet the demand from US buyers, such as environmental and workers' safety concerns.' — The Jakarta Post/ANN
The Star
24-04-2025
- Automotive
- The Star
President Prabowo shrugs off LG pulling out from battery investment
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. READ ALSO: Indonesia says China's Huayou to replace LGES in EV battery project 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
Business Times
21-04-2025
- Business
- Business Times
South Korea's LG Energy Solution pulls out of Indonesia EV battery investment
[JAKARTA] South Korea's LG Energy Solution has formally withdrawn from a 142 trillion rupiah (S$11 billion) project to develop electric vehicle battery making in Indonesia, the company said on Monday (Apr 21). LGES and the Indonesian 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 South-east Asian 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. 'However, we will continue to explore various avenues of collaboration with the Indonesian government, centreing on the Indonesia battery joint venture, HLI Green Power,' it added. HLI Green Power, a joint venture led by LGES and Hyundai Motor Group, last year inaugurated Indonesia's first battery cell production plant with an annual capacity of 10 gigawatt hours. It has plans to expand the capacity in the second phase of investment. Indonesia will continue to seek foreign investors to partner with local companies to develop the battery industry, leveraging the country's rich nickel reserves, said energy ministry official Tri Winarno. 'Even though LG has exited, Indonesia remains convinced our nickel is more competitive than other countries,' he told reporters. Indonesian state-controlled miner Aneka Tambang, which had planned to form a JV with LGES to mine nickel, said it remained committed to work with other companies to supply nickel for battery production. State firm Indonesia Battery Corporation, which had also planned to partner with LGES, did not respond to requests for comment. REUTERS
Business Recorder
21-04-2025
- Business
- Business Recorder
South Korea's LG Energy Solution pulls out of Indonesia EV battery investment
JAKARTA: South Korea's LG Energy Solution has formally withdrawn from a 142 trillion rupiah ($8.45 billion) project to develop electric vehicle battery making in Indonesia, the company said on Monday. LGES and the Indonesian 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 Southeast Asian 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. 'However, we will continue to explore various avenues of collaboration with the Indonesian government, centering on the Indonesia battery joint venture, HLI Green Power,' it added. HLI Green Power, a joint venture led by LGES and Hyundai Motor Group, last year inaugurated Indonesia's first battery cell production plant with an annual capacity of 10 gigawatt hours. It has plans to expand the capacity in the second phase of investment. India ends import duty for items needed to make EV batteries, phones Indonesia will continue to seek foreign investors to partner with local companies to develop the battery industry, leveraging the country's rich nickel reserves, said energy ministry official Tri Winarno. 'Even though LG has exited, Indonesia remains convinced our nickel is more competitive than other countries,' he told reporters. Indonesian state-controlled miner Aneka Tambang, which had planned to form a JV with LGES to mine nickel, said it remained committed to work with other companies to supply nickel for battery production. State firm Indonesia Battery Corporation, which had also planned to partner with LGES, did not respond to requests for comment.
Time of India
21-04-2025
- Automotive
- Time of India
South Korea's LG Energy Solution pulls out from Indonesia EV battery investment
South Korea's LG Energy Solution has formally withdrawn from a 142 trillion rupiah ($8.45 billion) project in electric vehicle battery making in Indonesia, the company said on Monday. LGES and the Indonesian government signed a deal on the so-called Indonesia Grand Package project in late 2020, which include investments across the EV battery supply chain . "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. "However, we will continue to explore various avenues of collaboration with the Indonesian government, centring on the Indonesia battery joint venture, HLI Green Power ," it added. HLI Green Power is a joint venture led by LGES and Hyundai Motor Group . The company last year inaugurated Indonesia's first battery cell production plant for EVs with annual capacity of 10 Gigawatt hours of battery cells, with plans to expand the capacity in the second phase of investment. Indonesia's investment ministry as well as state companies Aneka Tambang and Indonesia Battery Corporation, which had planned to partner with LGES for the project, did not immediately respond to requests for comment.
