Jakarta, CNBC Indonesia – A number of state-owned enterprises (BUMN) will form companies Holding named PT Indonesia Battery to operate an electric vehicle battery factory.
This was conveyed by the CEO of Holding BUMN Mining MIND ID or Inalum Orias Petrus Moedak in a discussion about virtual nickel downstreaming on Tuesday (13/10/2020).
Orias said the battery factory construction would be led by Inalum through PT Aneka Tambang Tbk, together with PT Pertamina (Persero) and PT PLN (Persero). These three companies will later become part of the company holding Indonesia Battery. Currently his party is preparing to form a company Holding PT Indonesia Battery.
“Upstream there is Antam, which intermediate there is Pertamina, downstream there is PLN. Now it is being processed. There will be Indonesia Battery later holding company involved in making batteries from upstream to downstream, “he explained in a discussion on Tuesday (10/13/2020).
Orias said that currently there are two potential partners from China and Korea who are being approached to cooperate and become investors in this electric car battery factory. According to him, this project will be integrated from upstream to downstream. Unmitigated, he said the investment value is even estimated at around US $ 12 billion or around Rp. 177.6 trillion (assuming an exchange rate of Rp. 14,800 per US $).
He further said that the estimated investment of US $ 12 billion would be obtained from two potential partner companies, each of which was estimated to invest US $ 7 billion and US $ 5 billion, depending on the size. Currently, according to him, his party is in the process of discussing the potential investors and it is hoped that an agreement can be reached soon.
He said the US $ 12 billion investment cost would be obtained from shareholder equity and banking. According to him, all lines must be focused, lest banks not provide support.
He also hopes that the industry can absorb these batteries later. If the industry does not absorb, then exports will not be avoided. This will be very unfortunate because it means that we are providing subsidies for other countries.
“If we produce something at a price that is not too expensive at home, and then buy it by foreign companies, it is tantamount to providing subsidies indirectly,” he said.
(wia)
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