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Gov't vows full support for Foxconn's battery investment

Jakarta Globe - June 25, 2022

Novy Lumanauw, Bogor – President Joko "Jokowi" Widodo has instructed his cabinet to make sure that Taiwanese tech company Hon Hai Precision Industry Co. Ltd (Foxconn) materializes investments in battery and electric vehicle industries here without any hurdle, Investment Minister Bahlil Lahadalia said on Saturday.

Foxconn has agreed to build electric car components, batteries, and electric motors and relocate its telecommunications spare part manufacturing facilities from China to the Batang integrated industrial area in Central Java in a move estimated to bring $8 billion direct investment to Indonesia.

Earlier this year, the Taiwanese firm signed an MoU on the joint venture project with Indonesia's state-owned battery maker Indonesia Battery Corporation (IBC), Indonesia's listed miner Indika Energy, and Taiwan's electric bike maker Gogoro Taiwan for its Indonesian operations.

The much-awaited investment is in line with the Jokowi administration's ambition to build the most extensive EV ecosystem in the region.

"Mr. President has instructed me to keep an eye on the investment until it is materialized," Bahlil said after a meeting with Jokowi at Bogor Palace, West Java.

He was accompanied by Foxconn Chairman Liu Young-Way and Indonesian Chamber of Commerce and Industry Chairman Arsjad Rasjid.

"Mr. President is keen to see the investment materialized immediately. One thing to his delight, this [investment] involves a collaboration of a state-owned company, a foreign investor, and local MSMEs and entrepreneurs," Bahlil said.

Foxconn's investment would put a milestone to Indonesia's ambition to develop a global-scale electric vehicles industry and attract more investment to its shores. The Investment Coordinating Board (BKPM) targeted to attract domestic and foreign investment totaling Rp 1,200 trillion this year, up 33 percent from Rp 901 trillion last year.

For Foxconn, the initiative would present an ample opportunity to develop a sustainable new energy ecosystem in Indonesia with local partners.

"Hon Hai is excited to embark on the journey to transform the new energy ecosystem in Indonesia in cooperation with the local government, Gogoro, IBC, and Indika," Liu, the chairman of Hon Hai Technology Group, said in a statement in February.

"I believe the implementation of the MIH platform, alongside our build-operate-localize (BOL) strategy and manufacturing expertise, will allow us to meet the market demand and create a sustainable new EV [electric vehicles] ecosystem in Indonesia," Liu said. He referred to "Mobility in Harmony," an open EV ecosystem platform promoted by mainly Asian companies.

Source: https://jakartaglobe.id/business/govt-vows-full-support-for-foxconns-battery-investmen