Investment Minister, concurrently Investment Coordinating Board (BKPM) Head Bahlil Lahadalia accentuated that Indonesia was currently pushing for industrial downstreaming, as it was entering a new phase.
“Currently, Indonesia is entering a new phase. If we used to export raw materials, we are now pushing for industrial downstreaming,” Lahadalia noted in a statement here, Friday.
The statement was delivered by Lahadalia during a webinar titled “Post Pandemic Economic Recovery: Attracting Investment through Structural Reform.”
With over 17 thousand islands and a population of 270 million people, who constitute 43 percent of the population in Southeast Asia, people are sentient of the fact that Indonesia is a rich country, he noted.
“However, it is not sufficient to build Indonesia with the same old patterns. Hence, the government is currently pushing for the downstreaming of all natural resources to help in encouraging the development of electric cars and electric batteries,” the minister stated.
This is reflected in the cooperation agreement between Indonesian SOEs and the LG Group some time ago in Karawang for building an electric vehicle battery factory followed by a cooperation plan with CATL from China at the end of December.
Lahadalia invited Europe to invest in developing the electric vehicle battery industry in Indonesia.
“Why am I inviting you (Europe)? Because of the total world nickel reserves, around 24-20 percent are in Indonesia,” he remarked.
Raw materials for the production of vehicle battery are nickel, manganese, cobalt, and lithium. Thus, it provides benefits for Indonesia regarding the supply of these raw materials.
Apart from the electric vehicle battery industry, he also invited European investors to become involved in other business fields, such as coal and palm oil.
The minister has ensured that the Indonesian government will continue to make arrangements to protect the environment.
“I invite all of you to come to invest in Indonesia. The government will always help in finding the best solution for the ease-of-doing business and the sustainability of companies in Indonesia,” he added.
Source: Antara News