Cooperation with S.Korea boosts Indonesia’s EV development

The Indonesian and South Korean governments signed a memorandum of understanding (MoU) for cooperation on the development of electric vehicle (EV) ecosystem in Indonesia.

The cooperation plan in the MoU covers all means of transportation powered by electricity, such as battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs).

The two countries agreed to cooperate in building infrastructure, exchanging manpower, and improving policy for the expansion of electric mobility.

The signing of the MoU is in line with discussions between Indonesian President Joko Widodo and South Korean President Yoon Suk Yeol to encourage the development of the EV industry by accelerating Korean companies' investment in Indonesia, reports ANTARA, an Indonesian News Agency.

The automotive sector becomes a target for the strengthening of cooperation between the two countries. Especially in the EV battery segment, South Korea's technological advantages are deemed suitable to be combined with the potential of Indonesia which is home to the world's largest nickel reserves, says the report.

Indonesia affirmed its commitment to a US$9.8 billion EV battery manufacturing project. (Source: LG Energy Solution)

At the same time, according to Jakarta Global, the Indonesian government has worked with a consortium led by LG Energy Solution to fast-track the establishment of an EV battery manufacturing plant and associated facilities.

It is reported that the US$9.8 billion project also involves the Indonesia Battery Corporation (IBC), a consortium comprising four state-owned enterprises.