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Four SOEs unite to form EV battery producer
Indonesia Battery Corporation (IBC), with all its planned joint ventures, is estimated to become a US$17 billion investment.
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Officials launch Indonesia Battery Corporation (IBC) in Jakarta on Friday. The officials (left to right) are Pertamina strategic portfolio and new ventures director Iman Rachman, PLN president director Zulkifli Zaini, SOEs Ministry spokesperson Arya Sinulingga, SOEs Minister Erick Thohir, Deputy SOEs Minister Pahala Mansury, EV battery acceleration task force chairman Agus Tjahajana Wirakusumah, MIND ID president director Orias Petrus Moedak and Antam president director Dana Amin. (SOEs Ministry/Dhemas)
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ndonesia Battery Corporation (IBC) is one step closer to becoming a reality after four large state-owned enterprises (SOEs) signed a shareholders’ agreement on the company’s ownership structure on March 16.
Under the agreement, state-owned oil giant Pertamina, electricity monopoly PLN, mining holding company MIND ID and nickel and gold miner PT Aneka Tambang (Antam) will each own 25 percent of IBC, an electric vehicle (EV) battery holding company.
IBC plans to partner with other companies, most notably China’s CATL and South Korea’s LG Chem, the world’s top two EV battery producers, to establish several joint ventures to create an end-to-end EV battery supply chain in Indonesia.
“The work is not yet done. This is still on paper. We hope to implement this by 2022 or 2023, in terms of producing [batteries] domestically. Inshallah [God willing], our good intention will create a legacy for Indonesia,” said SOEs Minister Erick Thohir during a joint press conference on Friday.
Read also: State holding to be Indonesia’s battering ram into global battery market
The government established IBC to penetrate the highly lucrative global EV market, which according to MIND ID’s estimates will nearly quadruple in size over the next six years to 777 gigawatt hours (GWh), largely driven by new EV demand but also by new energy storage system (ESS) demand.
Indonesia’s own battery demand is expected to grow 30 times over the same period to 5.9 GWh by 2027, assuming the government successfully pushes EV usage, particularly in the planned new state capital in Kalimantan, according to the same estimate.
