Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, reported that South Korean investment in Indonesia from 2019 to Q1 2024 reached USD 13.9 billion, equivalent to IDR 227.3 trillion (exchange rate IDR 16,358 per USD). According to data from the Ministry of Investment/BKPM, South Korean investment during this period ranked as the 7th largest source of foreign direct investment (FDI) in Indonesia. The three main sectors contributing to South Korean investment are electricity, gas, and water (21%); the automotive industry (18%); and the machinery and electronics industry (10%). Bahlil appreciated the South Korean investment in the battery and electric vehicle ecosystem in Indonesia, which was inaugurated by President Joko Widodo at PT HLI Green Power's factory in Karawang, West Java. This investment is valued at USD 4.46 billion or IDR 71.36 trillion. Bahlil noted that once all phases, from mining, smelter, HPAL (High-Pressure Acid Leach), precursor, battery cells, to vehicles, are ready, Indonesia will become a key player in the electric vehicle battery ecosystem, particularly in nickel-based batteries. This marks Indonesia as the first country globally to develop such an integrated ecosystem.
The presence of President Joko Widodo from the groundbreaking in 2021 to the review in September 2023 and the inauguration today has been a significant encouragement. This project underscores the commitment of Presidents Jokowi and Moon Jae-in to strengthening bilateral economic and investment cooperation, as discussed during their 2019 meeting in South Korea. The battery and electric vehicle ecosystem development includes a USD 3.2 billion electric vehicle battery cell factory, which will employ 2,800 workers, with a production capacity of 10GWh and an investment of USD 1.2 billion in its first phase. Additionally, the investment in the battery pack is valued at USD 42.12 million, and electric vehicle production at USD 1.22 billion.
