Despite initial setbacks, LG remains strongly committed to its investment in Indonesia’s electric vehicle (EV) battery ecosystem, said Investment and Downstreaming Minister Rosan P. Roeslani on Tuesday, April 29, 2025.

According to Roeslani, LG’s total planned investment stands at US$9.8 billion, divided into four major joint ventures with different partners. Although LG decided to step back from the first three joint ventures, the fourth − focused on battery cell production − has been completed with an investment of $1.1 billion.

“They are even planning to expand their investment by another $1.7 billion for the development and expansion of the battery cell plant," Rosan told a press conference on Tuesday, April 29, 2025.

"This shows that LG’s commitment remains solid. If completed, the investment in this fourth joint venture alone will total $2.8 billion,” he said.

Rosan emphasized that LG's continued involvement is vital for Indonesia’s EV supply chain ambitions, covering the full process from nickel mining to battery recycling.

Huayou steps in

China's Huayou Cobalt is set to bolster Indonesia’s ambitious EV battery industry plan after LG’s partial withdrawal, Rosan has announced.

Following meetings with Huayou’s leadership, Roeslani confirmed that the Chinese company is keen to participate and will bring updated technologies to the Grand Package − a comprehensive investment framework covering mining, refining, and battery production.

“We want to ensure that this investment utilizes the most advanced technologies available,” Roslani said. “Huayou’s entry will reinforce our nickel-based EV battery ecosystem, ensuring that more value is added locally in Indonesia.”

Further negotiations with Huayou are expected to continue in May, with the aim of finalizing detailed agreements to meet Indonesia’s long-term industrialization goals.

Apple moves ahead with Batam investment

Apple’s investment in Batam for AirTag production is proceeding smoothly despite global trade tensions, Rosan said.

“Apple has already purchased land, completed land clearing, and begun preparatory works in Batam,” Rosan said. “Their commitment remains strong, and interestingly, the investment is expected to increase.”

Roeslani also revealed that Indonesia is in talks with three additional Apple suppliers to set up operations locally. "This is a major opportunity," he said. “Components produced in Indonesia for Apple will benefit from tariff exemptions, making the country an even more attractive hub for tech manufacturing.”

The minister added that this move could further position Indonesia as a critical part of Apple’s global supply chain amid shifting trade dynamics.