Investment Minister and head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia has said his ministry will soon sign a cooperation agreement with multinational electronics firm Foxconn to develop the electric vehicle industry in Indonesia.

“Insya Allah (If God wills), Foxconn is interested in investing in Indonesia. I cannot say about the detail of the amount and when the investment will start yet. Hopefully, it will be this year,” he informed while visiting the Indonesian Pavilion at the 2021 Dubai Expo on November 2, 2021, according to a written statement received here on Thursday.

President Joko Widodo has issued a directive to the ministry, asking it to secure the company’s investment for several domestic industries related to electric batteries, electric cars and motorcycles, as well as communication device spare parts, he informed.

The investment is also going to involve national corporations, as well as micro, small, and medium enterprises (MSMEs), he said.

In addition, the company will not only help build the electric car industry in Indonesia, but also establish a vehicle components industry, he said.

“It will give tremendous added value, so the product’s price will be very competitive,” Lahadalia noted.

According to him, Indonesia has a huge opportunity to become a major player in the global electric car industry.

He also said there would be other investors in the industry, including German automotive companies.

“When I was having a working visit in Germany last month, I spoke with the representatives from Volkswagen and BASF,” he disclosed.

The companies confirmed that they wanted to become a part of the supply chain for electric car batteries industry in Indonesia, he said.

Furthermore, the minister emphasized that one of the President’s visions is to realize economic transformation by adding products’ value through industrial downstreaming.

In addition, the government is also encouraging all industries to be environmentally friendly, and one of the attempts to achieve this is downstreaming the electric vehicle industry, he added.

“Indonesia’s target is to become one of the world’s leading electric car players,” Lahadalia remarked.

Source: Antara News