News - Investing IDR 160 T, Jokowi Inaugurates Electric Vehicle Battery Factory in Karawang

Investing IDR 160 T, Jokowi Inaugurates Electric Vehicle Battery Factory in Karawang

Jul, 05 2024

Indonesian President Joko Widodo (Jokowi) inaugurated the first and largest electric vehicle battery factory in Southeast Asia, which was held at PT Hyundai LG Indonesia (HLI) Green Power, Karawang, West Java.

Jokowi said that the inauguration of this battery and electric vehicle factory would be a new chapter and milestone in Indonesia's commitment to becoming a global player in the battery cell and electric vehicle EV ecosystem.

“Most importantly, we must truly be able to enter as a global player in the electric vehicle supply chain. "This one has already started and this is the first and largest EV battery cell factory in Southeast Asia," said Jokowi, quoted Thursday, July 4 2024.

Jokowi believes that nothing can stop Indonesia from competing in the electric vehicle ecosystem and the materials are already complete in Indonesia.

"I am confident that we will be able to win our competition with other countries, because the mine is here, the nickel is here, the bauxite is here, the copper is here, there is a smelter, it goes into the cathode and precursor, then into EVs. battery, then the car factory is here, integrated into an ecosystem for electric cars," he stressed.

The former Governor of DKI Jakarta also really appreciates the consortium between Hyundai and LG in building the grand package electric battery ecosystem, this indicates that relations between South Korea and Indonesia are getting better.

"With an investment of IDR 160 trillion which will be completed in stages. "Hopefully this will mark the improvement in relations between the Republic of Korea and Indonesia," he concluded. (*)

SOURCE

Head of the West Java-Bandung Raya region testing buses to finalize BRT plans

Bandung (ANTARA) - The Regional Head of West Java Province and the district/city of Greater Bandung conducted a trial of the Bandung Square-Kota Baru Parahyangan city bus, this Monday, in order to finalize plans to develop the Greater Bandung Bus Rapid Transit (BRT) transportation system. The trial using this bus transportation tool was to assess several aspects before the BRT Bandung Raya operational, such as regarding comfort and travel time during the trip. "We, together with the regional heads in the Bandung basin or the Greater Bandung metropolitan area, tried the BRT directly and the buses were comfortable, but the travel time was not congested for an hour, I think it's quite good, just need to be strengthened. Maybe special lanes are also needed in several corridors," said the Acting West Java Governor Bey Triadi Machmudin in West Bandung, Monday. Bey said that from the planned 21 corridors when they operate later, currently there are only five corridors that are quite good, such as Dipatiukur-Jatinangor, Baleendah-BEC, Alun-alun-Padalarang, Leuwipanjang-Dago, and Leuwipanjang-Soreang. "For the initial three corridors, 56 percent were on time, so we are optimistic that this will be a useful mode of transportation, especially for residents of Greater Bandung," he said. Regarding travel time in relation to existing traffic and road width, Bey said that the BRT stops at each stop for a maximum of two minutes, and the headways are between adjacent bus units to avoid pile-ups, either on buses or at stops. In the future, said Bey, infrastructure for the Greater Bandung BRT will begin to be built in early 2025, including an operations command center for managing bus units, CCTV equipment in buses for security. "Also, an integrated payment system will be created with one payment for the entire corridor with crossing points created. The budget for infrastructure will be from the World Bank. So of course it is hoped that the people of Greater Bandung will switch to bus transportation," he said. The Greater Bandung BRT will begin construction in early 2025, then continue with phase II in 2026 and be fully operational in 2027, the corridor of which will cover the areas of West Bandung Regency, Cimahi City, Bandung City, Bandung Regency and Sumedang Regency. (SOURCE)

Nov, 05 2024

These are the Conditions For Moving to the Upstream Oil and Gas Investment Scheme

The government is currently making adjustments to more flexible upstream oil and gas (oil and gas) investment regulations. This initiative is expected to provide easy benefits for Cooperation Contract Contractors (KKKS) in running oil and gas businesses in Indonesia. They were even offered a new gross split scheme which was simpler and more feasible. This regulation is contained in the Minister of Energy and Mineral Resources (MEMR) Regulation Number 13 of 2020 and the Decree of the Minister of Energy and Mineral Resources Number 230.K/MG.01.MEM/2024. The essence of improving the gross split profit sharing scheme is to provide guaranteed profit sharing of around 75-95 percent for contractors, make Non-Conventional Oil and Gas Work Areas (WK) more attractive, simplify parameters, and provide more flexible (agile) options to contractors. "This simplification is not only to encourage a new gross split, but also the government provides flexibility for contractors to choose the type of contract according to the contractor's convenience. Please allow contractors who want to move to Cost Recovery from the previous Gross Split or vice versa," said the Director of Upstream Oil and Gas Development. Ministry of Energy and Mineral Resources Ariana Soemanto in Jakarta, Saturday (5/10). The implementation of this policy, continued Ariana, applies to contracts signed after Ministerial Regulation Number 13 of 2024 regarding Gross Split Production Sharing Contracts. Meanwhile, existing oil and gas contractors whose contracts were signed before the Ministerial Regulation was issued can switch to a new gross split contract with several notes. First, the old gross split scheme contracts for MNK, including coal methane gas and shale oil/gas, can switch to the new gross split scheme. "This is like the MNK Coal Methane Gas project in Tanjung Enim. It will soon switch to a new gross split so that it can run because the economics are improving," explained Ariana. Second, the cost recovery scheme contract can switch to a new gross split scheme, as long as it is still in the exploration stage and has not received approval for the first plan of development (POD-I) from the Government. "As for old or existing gross split scheme contracts that are already in the production stage, they cannot be changed to the new gross split scheme, but can be changed to cost recovery scheme contracts," said Ariana. To date, there are at least five contractors/blocks who have expressed interest in using the new gross split scheme, in accordance with the Regulations and Decree of the Minister of Energy and Mineral Resources. "Who and which blocks, we should wait for the formalities later. Of course, it's up to the contractor to choose which contract scheme suits each contractor's risk profile. What's important is that we improve the investment climate to make it more attractive, to encourage the discovery of oil and gas reserves and production in the future ," said Ariana. As is known, the Ministry of Energy and Mineral Resources has just issued Minister of Energy and Mineral Resources Regulation Number 13 of 2024 concerning Gross Split Production Sharing Contracts which was signed on August 12 2026. This Ministerial Regulation replaces Minister of Energy and Mineral Resources Regulation Number 8 of 2017 concerning Gross Split Production Sharing Contracts which has been adjusted several times. Apart from that, Decree of the Minister of Energy and Mineral Resources has also been stipulated Number 230.K/MG.01.MEM.M/2024 concerning Implementation Guidelines and Components of Gross Split Production Sharing Contracts. "The government will always try to fulfill stakeholder input while maintaining the interests of the state," concluded Ariana. (NA) (SOURCE)

Oct, 07 2024

BYD Accelerates Construction of Factory in Subang, Ensures Completion by End of 2025

Bisnis.com, JAKARTA - Chinese automotive manufacturer, PT BYD Motor Indonesia continues to pursue the completion of the construction of the company's factory located in the Subang Smartpolitan Industrial Area, West Java. Head of Marketing, PR & Government BYD Indonesia Luther T. Panjaitan said that until now, the construction of the factory is still ongoing and is certain to be completed by the end of this year. "Of course, that is BYD's commitment to the government to complete our factory by the end of 2025," Luther told Bisnis, quoted Friday (10/1/2025). Furthermore, he said, at the end of last year, the Ministry of Investment and Downstream/BKPM also visited the BYD factory and saw firsthand the construction process of the electric car factory from the Bamboo Curtain Country. "Based on their [BKPM] inspection and visit, they saw that BYD was in accordance or on-track with the investment progress commitment that we conveyed at the beginning of the initial investment submission. So, so far everything is running smoothly," he explained. Moreover, the BYD factory located in the Subang Smartpolitan Industrial Area is close to Patimban Port. This will make it easier for BYD to export its vehicles to various countries. In addition, the strategic location will also reduce logistics costs. "I also think that the factory area that we chose is a revolution in the industrial side, because so far many motor vehicle industries in particular, so far all seem to be centered on certain areas such as Karawang and Cikarang," he said. So far, the company's main plan is to produce vehicles. However, it is possible for the company to produce other electric vehicle components, including batteries. BYD's manufacturing facility is capable of producing 150,000 electric cars per year. Meanwhile, Subang Smartpolitan is an industrial area managed by PT Suryacipta Swadaya (SCS), an entity of PT Surya Semesta Internusa Tbk (SSIA). The construction of the BYD factory is said to provide an opportunity for local industries to bring the country as a global supplier of electric cars. BYD's total investment in Indonesia is targeting more than US$1 billion or around Rp16 trillion (assuming an exchange rate of Rp16,000 per US dollar). Meanwhile, there are currently four BYD car models available in Indonesia, namely the BYD M6 in the MPV segment, the BYD Atto 3 in the SUV segment, then the BYD Dolphin Hatchback, and the BYD Seal sedan. In the latest developments, the Chinese electric car manufacturer, BYD, has also confirmed that it will bring the premium segment electric car, namely Denza, to Indonesia in the first quarter of 2025. (SOURCE)

Mar, 14 2025

Minister of Investment is Committed to Equal Distribution of Investment in Eastern Indonesia

Jakarta (ANTARA) - Minister of Investment/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani is committed to continuing to distribute quality and sustainable investment in the Eastern Indonesia region. "The point is why we give more special appreciation to Eastern Indonesia, because if you look at the distribution of investment, previously investment was more concentrated in Java, then Sumatra, Kalimantan and Sulawesi. We want to give special attention to the Eastern part, so that "They can also attract quality and sustainable investment," said Rosan at the 2024 Investment Services Award press conference in Jakarta, Monday. In the 2024 Investment Service Award event which was held in Jakarta on Monday, the winners of the 2024 Investment Service Award for the Special Category for Eastern Indonesia were won by the Ambon City Government, the Merauke Regency Government and the Papua Provincial Government. Rosan said that the 2024 Investment Services Award was an event that always received attention from the international world. "So that's also what we want to convey, that equality is important for us. That's why we are paying special attention to Eastern Indonesia," he said. On the same occasion, Deputy Minister of Investment/Deputy Head of BKPM Yuliot said that the investment potential in Eastern Indonesia was extraordinary. Natural resources are generally found in Eastern Indonesia, and in general the potential for Eastern Indonesia is quite large. "So we are encouraging regions in Eastern Indonesia to be given opportunities. If we make existing standards, for example Eastern Indonesia and Java Island, then of course in terms of services and existing infrastructure, there is a gap between Eastern Indonesia and Western Indonesia. Of course "We see that with our special categorization, this encourages Eastern Indonesia to provide better services to investors," said Yuliot. For the sectors currently being pursued is downstreaming, in fact many investments related to downstreaming are located in Eastern Indonesia. "We see in Morowali, in the North Maluku region, in Papua, there are a lot of large-scale investment activities flowing and having a tremendous impact on our economy," said Yuliot. (SOURCE)

Oct, 01 2024

Bey said synergy with BI West Java would be further improved

Taking place in the Bank Indonesia (BI) West Java Province (Jabar) Hall on Jalan Braga, Bandung City, the new Head of West Java BI, Muhammad Nur, was officially inaugurated.The inauguration event was attended by a number of officials, including Acting Governor of West Java Bey Machmudin, Head of West Java OJK Imansyah, West Java Forkopimda, and bank leaders in West Java as well as stakeholders.During his speech, Bey said that the West Java Provincial Government would increase synergy with the West Java Bank Indonesia (BI) Representative Office under its new leadership."Hopefully in the future we will have more synergy," said Bey at the inauguration event, Friday (26/4/2024).Bey said, West Java BI is very necessary, especially in analyzing and encouraging the economic potential in West Java to become something whose benefits can be felt by the community."We need support and cooperation from BI West Java, especially regarding the analysis of economic potential in West Java," said Bey.It is known that the Head of West Java BI is now officially headed by Muhamad Nur, who was previously the Head of the BI Riau Representative, replacing the previous Head of West Java BI Erwin Gunawan Hutapea, who is now the Head of the East Java BI Representative.At the end of his speech, Bey said that the results of the West Java BI analysis regarding economic potential would be a guide for the West Java Provincial Government in making policies, especially in the creative industry, tourism, agriculture and information technology sectors."The results of the analysis will be our guide in making policies and development directions such as in the creative industry, tourism, agriculture and information technology," said Bey.On that occasion, Bey also said that in the fourth quarter of 2023, the West Java economy grew 5.15 percent, exceeding the previous quarter's 4.58 percent year on year (yoy). Meanwhile, West Java inflation in March 2024 will reach 0.51 percent."Controlling food inflation is our shared priority in 2024 and of course the role of West Java BI in maintaining the macro economy in West Java is very decisive," he said.Bey continued, West Java's economic stability will affect the inflow of investment and sustainable development for the welfare of the community."West Java is a driving force for the national economy because it is important to increase synergy in realizing community welfare," he concluded.(SOURCE)

Apr, 29 2024

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