Foxconn, other firms look to enter Indonesia’s EV market

            Taiwan-based companies and local firms have inked an US$8 billion (Rp114 trillion) investment deal to develop Indonesia’s electric vehicle ecosystem. Foxconn, a contract manufacturer known for Apple’s iPhone, and Gogoro, an electric scooter, and battery swap technology company, represent the Taiwan side in the deal, while coal giant Indika Energy and state-owned Indonesia Battery Corporation are the Indonesian side.

These companies will develop a wide range of EV segments, from cars, two-wheelers, and buses to battery production and supporting industries, namely energy storage systems, battery exchange or swap stations, battery recycling as well as research and development. “Under President Joko Widodo’s second term, Indonesia is focusing on encouraging sustainable investment in green energy and industry,” Investment Minister Bahlil Lahadalia said in a statement on Friday, adding that the government would take care of all of the required permits. The deal brings Indonesia – which holds almost a quarter of the global nickel reserves – a step closer to becoming a key player in the battery industry. The government has been defending its nickel ore export ban as it seeks to protect its reserves of the metal to attract EV investment, among other purposes.

State-Owned Enterprises (SOEs) Minister Erick Thohir said in a statement that the investment would help Indonesia achieve its net-zero emissions target by 2060, while also creating a multiplier effect for the benefit of local companies and paving the way for EV technology transfer. Foxconn chairman Liu Young-Way said they wanted to contribute to developing the local EV ecosystem and related energy market in Indonesia. “We hope that by sharing our technology and experience, we can help create more opportunities for local companies in the new energy and EV market,” Young-Way said in a statement on Friday.

The deal marked a new era in Indonesia’s commitment to becoming a global leader in sustainability and supporting an open ecosystem providing Indonesia with better and cleaner transportation options.

Jan 26, 2022, The Jakarta Post