Jakarta, Armfalcon.com —
Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia disclose Volkswagen interested in investing in Indonesia.
Bahlil said that Volkswagen through its subsidiary, PowerCo, plans to build an integrated electric vehicle battery industry in the country.
Volkswagen’s investment plan in Indonesia is targeted to supply electric battery products to a number of automotive brands under the auspices of the VW Group.
“VW will cooperate with several national and foreign companies. We are ready to oversee the investment plans to be realized immediately,” Bahlil said through an official statement, Tuesday (18/4).
According to him, the German company’s investment plan is the right moment to convey to the world that Indonesia is open to attracting investment. This means that Indonesia is not only attracting investment from Asia but also from Europe.
“I think this is a form of inclusive investment and can at the same time annul the international world’s way of thinking that considers mining in Indonesia does not pay attention to international principles,” added Bahlil.
PowerCo SE is a Volkswagen subsidiary founded in 2022 and headquartered in Salzgitter, Germany. The company carries out all the battery activities of the Volkswagen Group, from processing raw materials, developing batteries to managing European gigafactories.
PowerCo is targeted to supply 80 percent of electric battery products to a number of automotive brands under the auspices of the Volkswagen Group (Audi, Skoda, Lamborghini, Porsche, Bentley and Ducati).
Based on BKPM records, during the 2018-2022 period, Germany ranked 16th in the ranking of foreign countries with the highest investment value with a total investment of US$991 million.
Based on business sector, Germany’s highest investment was in the machinery, electronics, medical instruments, electrical equipment, precision, optical and clock industry sectors worth US$308.4 million and the largest investment was in Java worth US$499.8 million.