Jakarta, CNBC Indonesia – There is good news for shareholders of MIND ID’s subsidiaries, namely PT Aneka Tambang Tbk (ANTM), PT Vale Indonesia Tbk (INCO), and PT Timah Tbk (TINS).
The good news is in the form of plans to install piles (groundbreaking) a factory owned by the Indonesia Battery Corporation (IBC) and a consortium of companies from South Korea (South Korea) LG in Kota Deltamas, Bekasi, West Java.
The Minister of Investment / Head of BKPM Bahlil Lahadalia said that the first phase of construction has a battery production capacity of up to 10 Giga Watt hours (GWh), which will later be used for electric vehicles from Hyundai.
Even rumors circulating among market players say that the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan is currently in South Korea to finalize the investment.
This is good news for ANTM et al because the three shares are members of the Holding of Indonesia Battery Corporation.
IBC or PT Industri Baterai Indonesia was formed by four SOEs, namely Mining and Industry Indonesia (Mind Id), PT Pertamina (Persero), PT PLN (Persero), and Antam, which have a special mandate to manage the battery industry ecosystem for electric motor vehicles (electric vehicle battery/EV battery) which is integrated from upstream to downstream.
Meanwhile, the LG consortium consists of LG Energy Solution, LG Chem, LG International, POSCO and Huayou Holding. LG Energy Solution is currently one of the largest electric car battery manufacturers in the world. LG Electronics (LG Group) is the fifth largest company in South Korea in 2020 according to Fortune magazine.
During yesterday’s trade, Monday (24/5), the shares of the three MIND ID subsidiary shares had to have corrections. IDX data noted that ANTM’s shares were down by 2.58%, INCO was depreciated by 3.64%, and TINS was the worst down, which was 4.14%.
However, it turned out that foreigners took the opportunity with this correction and made a massive net purchase in the three shares of the MIND ID subsidiary.
Trade data shows that foreigners bought up ANTM’s shares of Rp 22 billion, collected INCO shares of Rp 16 billion, and collected Rp 2 billion of TINS shares.
Step groundbreaking this in itself is a follow-up signing Heads of Agreement(HoA) or the Principal Agreement for an integrated battery investment project between IBC and LG last month (29/4/2021) at the office of the Ministry of Investment / Investment Coordinating Board (BKPM), Jakarta.
Bahlil said this strategic investment in the electric vehicle battery cell industry was the first to be made in the history of the Republic of Indonesia. This factory is integrated with mining, smelter, and refining facilities (refining) as well as industry precursor and cathode.
According to him, this integrated electric battery production facility will be the first in Asia and even in the world. The investment value is estimated at US $ 9.8 billion or around Rp. 140 trillion.
Bahlil welcomes the progress of LG’s investment, considering that the strategic effort to build a downstream metal mining industry is a long and difficult process, because it involves various stakeholders, both at home and abroad.
“After going through a long process, we are grateful for the process groundbreaking it will finally begin soon. The work in the future will be even greater to build an integrated battery industry in Indonesia. We are committed to continuing to oversee this process and ask for support from all parties to realize an integrated and export-oriented electric battery industry in Indonesia, “he said in an official statement from the Ministry of Investment / BKPM, Monday (24/5/2021).
As is known, the forerunner of cooperation between IBC and LG began in 2019 when President Joko Widodo and South Korean President Moon Jae In met in Busan, South Korea on November 25, 2019.
After going through a series of exploratory processes, negotiations and studies, a Memorandum of Understanding or Memorandum of Understanding (MoU) was signed on December 18, 2020 in Seoul, South Korea between the Minister of Investment / Head of BKPM and the CEO of LG Energy Solution.
“The MoU negotiation process went through 25 document revisions, which we compiled and consulted with BUMN Minister Erick Tohir and agreed by both parties. This is one of the longest document drafting processes ever carried out by the Ministry of Investment / BKPM. After that, it took 15 times. intensive meetings both at the leadership level and at the technical level. We really appreciate the extraordinary dedication of the team, “said Bahlil.
After the HoA was agreed on April 29, 2021, then the consortium conducted a Joint Study (Joint Study), preparation of shareholder agreements, and company establishment agreements. The three processes are targeted to be completed immediately, so that the factory groundbreaking can be carried out immediately in the near future.
Currently, the Ministry of Investment is finalizing the MoU between parties in Cikarang (Hyundai) to finalize the plan joint venture(JV) construction of the cell battery plant (cell battery) for these electric vehicles. The investment that will be made to build this factory is US $ 1.2 billion. The factory is planned to occupy 33 hectares of land and absorb 1,000 Indonesian workers.
“Not only creating jobs in the regions, this investment cooperation project is projected to make Indonesia move up from a producer and exporter of raw materials to become an important player in the world supply chain for the electric vehicle battery industry,” Bahlil added.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
– .
