Indonesia opened on Wednesday an electric vehicle battery plant that is being touted as the Southeast Asian region's "first and largest."
President Joko Widodo, popularly known as Jokowi, said the factory is “an important milestone in Indonesia's commitment to become a global player in the world's electric vehicle supply chain.”
The plant, located in West Javan town of Karawang, is a joint venture between Hyundai and LG Energy Solution. Jokowi said it is “the first and largest in Southeast Asia.”
“Through this development, integration of added value from the natural resources of nickel, bauxite and copper will be created which will increase Indonesia's competitiveness.” Indonesia has the largest nickel reserves in the world, a crucial component in EV batteries.
As fourth-largest populous nation, the Indonesian market in recent past has seen a boom of imports, including those from China. Jakarta, however, is mulling to impose up to 200% tariff on Chinese imports.
Indonesia's Trade Minister Zulkifli Hasan said last week that the US-China trade war was “causing an oversupply in China as their products face rejection by Western countries, forcing them to redirect exports to other markets like Indonesia.”
Hasan said a new regulation is being drafted which will ensure Indonesian industries will “survive and thrive.”
