New Joint Venture Named Indonesia Battery Holding

Mining and Industry Indonesia (MIND ID) together with PT Pertamina and PT Perusahaan Listrik Negara (PLN) will form a holding company in the battery business for electric vehicles. MIND ID Group CEO, Orias Petrus Moedak, said that the process of forming the Indonesia Battery Holding (IBH) is currently underway. Later, IBH will be involved in the business of producing electric vehicle batteries, from upstream to downstream.

"The plan for the participation of State-Owned Enterprises (BUMN) in the value chain of the electric vehicle battery is that MIND ID and Antam (PT Aneka Tambang Tbk) will play more role in the upstream, Pertamina has role in intermediate process and PLN handles the downstream. To control business from upstream to downstream, we are now in a process of establishing, Indonesia Battery Holding, "Orias said in a webinar, Tuesday (13/10).

The total investment value of IBH from upstream to downstream reaches US$ 12 billion. Funding will come from a combination of equity from shareholders and bank loans. In addition, the formation of IBH will collaborate with foreign partners. According to Orias, there are already potential foreign partners from China and South Korea. Antam is currently intensively preparing a cooperation plan. However, he could not reveal the name of the company just yet. "This negotiation pattern is an unsolicited approach, they come and we cooperate, we do not open a tender," he said.