Three European companies including BASF have expressed interest in invest in the development of a car battery ecosystem in North Maluku province, Indonesia.

Jakarta (Indonesia Window) – Indonesian President Joko Widodo held a business meeting with three leaders of European companies, namely BASF, Eramet and Volkswagen through PowerCo. at Hotel Kastens Luisenhoff, Hannover, Germany, Sunday (April 16).

During the meeting, the leaders of the European companies including, BASF, expressed interests in investing in the development of a car battery ecosystem in North Maluku province, Indonesia.

"The investment is worth around 2.6 billion U.S. dollars," Indonesia’s Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia said in his statement after the meeting as reported by the Indonesian Cabinet Secretariat here, Monday.

Later, BASF will work with a French company, Eramet, to create this ecosystem by implementing business practices that pay attention to the factor of ESG (environment, social and government) and green energy.

“The construction process will begin by the end of 2023," Bahlil said, explaining that the Volkswagen company through PowerCo. will also build a car battery ecosystem in Indonesia through collaboration with a number of companies including national companies.

The minister believes this is the right moment to show that Indonesia is openly providing investment opportunities to companies around the world.

“This is a form of investment that is inclusive and at the same time to annul people's way of thinking that it is as if our mining management in Indonesia does not pay attention to the existing principles of international standards," Bahlil said.

Meanwhile, while attending the opening ceremony of the Hannover Messe 2023 on Sunday (April 16), Indonesian President Joko Widodo stated that Indonesia is very open to investment and cooperation, including those in the downstream industry and green economy.

"We are very open to investment and cooperation in building the downstream industry in Indonesia," the president said.

In building the industry, the president considers that Indonesia has enormous opportunities, as seen from the projected investment value in Indonesia's downstream roadmap which reaches 545.3 billion U.S. dollars.

"Until 2040 there are 21 commodities in the downstream roadmap which are projected to reach an investment value of 545.3 billion U.S. dollars. This is a very big opportunity, which is mutually beneficial," the president added.

In addition, the head of state also stressed Indonesia's commitment to maintaining environmental sustainability, which can be seen from a number of concrete actions that have been taken to improve the environment and efforts to implement the energy transition.

"The rate of deforestation has decreased significantly and is the lowest in the last 20 years, and forest fires have decreased by 88 percent. Rehabilitation of 600,000 hectares of mangrove forests will be completed in 2024, the largest in the world, and 30,000 hectares of green industrial areas will also be built," he said.

The president Widodo further said that Indonesia is also targeting 23 percent of the energy sources produced to come from new and renewable energy in 2025, and plans to close all coal-fired power plants in 2050.

"Indonesia also wants to ensure that the energy transition produces affordable energy for our people," he said.

Reporting by Indonesia Window