Minister of State-Owned Enterprises Confirms German Companies' Investment in Indonesia's EV Battery Industry

- 19 April 2023 20:08 WIB
Indonesian Minister of State-Owned Enterprises Erick Thohir Shaking hands with a business representative in Hannover, Germany.  ( @erickthohir)
Indonesian Minister of State-Owned Enterprises Erick Thohir Shaking hands with a business representative in Hannover, Germany. ( @erickthohir)

JAKARTADAILY.ID – Three German companies, BASF, Erament, and Volkswagen Group via PowerCo, have expressed their interest in investing in the development of an electric vehicle battery industry ecosystem in Indonesia.

The companies made the announcement during Indonesian President Joko Widodo's visit to Hannover, Germany, signaling a positive development for Indonesia's economy.

BASF specifically expressed its interest in investing in the ecosystem in North Maluku, which is set to begin in late 2023, according to the Minister of State-Owned Enterprises, Erick Thohir.

Also Read: INA and Kadin Indonesia Collaborate to Enhance Investment Ecosystem in Indonesia

He added that this collaboration guarantees the creation of new job opportunities in Indonesia and is expected to improve Indonesia's economic balance.

It is known from the BASF Indonesia website that BASF has been investing in Indonesia since 1976. Currently, BASF's solutions support Indonesia's main industries, including agriculture, nutrition, and health. This global company also develops household and personal care products.

BASF Indonesia's headquarters are located in Jakarta, and BASF operates three production locations in Cengkareng, Cimanggis, and Merak.

In 2020, BASF recorded sales of around €416 million to customers in Indonesia and employed 562 employees by the end of the year.

Meanwhile, after sending off the annual exodus of travelers in the Mudik Bersama BUMN program in the Senayan area of Jakarta on Tuesday, April 18, 2023, Erick expressed the uncertain economic conditions in Germany and European countries.

This can be seen, among other things, from its high inflation rate, which has caused the prices of goods and energy to rise.

"Inflation is very high. For example, a cup of coffee used to be 2 euros, now it's 3.5 euros. And electricity, if a house used to cost several thousand euros, now it can triple," Erick said.

According to him, Europe is experiencing economic difficulties because it adopts an open economic system. This is different from Indonesia, which adopts an economic system that allows the government to help when the economy faces challenges.

Also Read: Erick Thohir on the Removal of Indonesia as the Host of U-20 World Cup: I've Tried My Best

"The difference with Indonesia is that the government is present. The president is very concerned about the issues that occur in society," he said.


Editor: Suksmajati Kumara


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