Indonesia’s Investment Minister Rosan Roeslani announced that Chinese firm Huayou is set to invest up to US$20 billion (Rp335.7 trillion) in the country. This includes taking over the electric vehicle (EV) battery supply chain project previously led by LG Energy Solution, which withdrew after failing to reach an agreement with the Indonesian government over five years.

Rosan said, “Their (Huayou’s) investment in Indonesia as of today has already reached US$8.8 billion (Rp147.7 trillion). It’s been planted, it’s done.”

Additional Industrial Projects Under Huayou Group

Beyond the EV sector, Huayou is also preparing other investments, including a new industrial park cluster. Rosan explained that Huayou is already a minority shareholder in the Indonesia Weda Bay Industrial Park (IWIP). Now, the company is exploring a larger-scale investment in Pomalaa, Southeast Sulawesi.

“We want to develop in other areas too. The planned location is in Pomalaa. Why is the investment projected to be so large? Because we know building an industrial park like Morowali or Weda Bay certainly involves huge costs,” he said.

Detailed Investment Plan to Be Unveiled in May 2025

Minister Rosan noted that Huayou’s top executives have held preliminary talks with the Indonesian government. They are expected to provide more detailed plans in May 2025, although a specific date has not been confirmed.

Joint Venture with Indonesia Battery Corporation

As part of the revised EV battery project, Huayou will form a joint venture with state-owned Indonesia Battery Corporation (IBC). This partnership replaces the previously planned Rp130 trillion (11 trillion won) investment by LG’s consortium, which ultimately failed due to prolonged negotiation hurdles.

PHOTO: BLOOMBERG

This article was created with AI assistance.