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Indonesia’s Industrial Export Ambitions

‘HATTRICK’ Indonesia as partner country in Hannover Messe 2023​

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Indonesia’s nickel riches spur local company EV, battery ambition​

Visitors examine a Wuling Air electric vehicle, right, at the Gaikindo Indonesia International Auto Show in Tangerang, Indonesia

Visitors examine a Wuling Air electric vehicle, right, at the Gaikindo Indonesia International Auto Show in Tangerang, Indonesia, on August 18, 2022 © Bloomberg

Erwida Maulia and Ismi Damayanti, Nikkei staff writers

FEBRUARY 13 2023

From coal miners to conglomerates, Indonesia’s burgeoning electric vehicle and battery scene is attracting broad local corporate interest buoyed by the country’s rich nickel resources and government promises of incentives.

The involvement comes as global EV makers including China’s BYD and Tesla of the US have either signed or are “finalising” deals to invest in Indonesia, Luhut Pandjaitan, co-ordinating minister for maritime affairs and investment, told a briefing of Indonesian regional leaders last month.

Companies hope to ride on the government’s push to utilise the country’s nickel reserves to develop a battery industry, enter the global EV supply chain and develop a manufacturing base. With a population of more than 270mn, Indonesia also offers a potentially huge market.

But formidable challenges to individual, public and business adoption include consumer affordability, lack of public charging infrastructure and corporate governance questions over potential conflicts of interest arising from close relations among government officials, politicians and companies.

The Indonesia Morowali Industrial Park on Sulawesi island

The Indonesia Morowali Industrial Park on Sulawesi island hosts dozens of nickel smelters, including for battery materials © Dimas Ardian

Among the most aggressive entrants so far is family-controlled Bakrie & Brothers, a conglomerate with interests spanning energy, infrastructure and telecommunications. It supplied dozens of BYD’s electric buses to the TransJakarta public bus system last year through subsidiary VKTR Teknologi Mobilitas and is seeking more deals.

“For 80 years, Bakrie & Brothers has focused on steel, infrastructure and other [areas],” Anindya Bakrie, company president, said at a public event in December. He added that the next three areas the company would focus on are electrification, renewable energy and digitalisation.

Indonesia is the world’s biggest producer of nickel, a key component in long-range EV batteries. Dozens of battery-related projects are under construction — mainly on nickel-rich Sulawesi and Halmahera islands, including ones led by Chinese battery giant Contemporary Amperex Technology (CATL) and its South Korean rival LG Energy Solution.

Some local companies are building smelters to process nickel ore into feedstock for battery production. Others are focusing on manufacturing and/or distribution of e-scooters and commercial EVs such as buses and trucks, as electric cars remain largely unaffordable for most Indonesians. Still others are installing charging or battery swap stations. And many are collaborating with foreign companies to catch up on technology and aid financing.


Besides Bakrie, other so-called old economy companies sense an opportunity. Major coal miners such as Indika Energy, Adaro Energy and TBS Energi Utama, armed with record profits from soaring coal prices over the past two years, see the EV sector as a way to diversify amid rising climate pressures.

Indika, through subsidiary Ilectra Motor Group, announced a partnership in January with Damon Motors to domestically distribute the Canadian electric motorbike start-up’s products. That follows Ilectra’s launch last year of e-scooter brand Alva One, while Indika formed a joint venture with Taiwanese tech group Foxconn — Foxconn Indika Motor — with initial plans to domestically manufacture batteries and electric buses.

TBS last year formed Electrum, a joint venture with Indonesian ride-hailing giant Gojek to supply 2mn e-scooters for Gojek drivers this decade. Electrum is partnering with Taiwanese e-scooter maker Gogoro and the Indonesian state-owned manufacturer of Gesits e-scooters for the procurement, but is also planning to build its own production facility this year.

Adaro, meanwhile, has set up battery subsidiary Adaro Baterai Indonesia and is building a $2bn aluminium smelter and supporting facilities on Borneo island, with the first phase expected to finish in 2025.

Indonesian state oil giant Pertamina has installed charging stations for EVs at some of its gasoline stations on the islands of Java and Bali

Indonesian state oil company Pertamina has installed charging stations for EVs at some of its gasoline stations on the islands of Java and Bali © Erwida Maulia

A key hurdle to EV uptake is lack of public charging infrastructure. Some companies are moving to fill the void.

Singapore-based EV start-up ION Mobility, in which GDP Venture — the venture capital arm of major conglomerate Djarum Group, owned by Indonesia’s richest men, the Hartono brothers — participated in seed funding, is preparing battery pack and e-scooter production in Indonesia. It also plans to install at least 100 charging stations in partnership with Indonesian state utility Perusahaan Listrik Negara (PLN).

Property majors are also enthusiastic. Sinarmas Land — the property arm of Sinar Mas Group, controlled by the Widjaja family — is looking to integrate electric buses as part of smart city features under development in its flagship suburban Jakarta township projects. John Riady, executive director of Lippo Group, focused on property and hospitals, told Nikkei Asia in November it is looking to invest in renewable energy and EVs — “probably doing that in partnership with entrepreneurs”.


Private sector participation adds to initiatives led by state-owned enterprises including oil and gas giant Pertamina, PLN, miner Aneka Tambang and mining holding company MIND ID. The four established the Indonesia Battery in 2021, which separately partners with CATL and LG Energy Solution to develop an “end-to-end lithium battery supply chain”.

Pandjaitan, the chief investment minister, said on February 2 that Indonesia could start producing lithium-ion batteries as early as 2024, adding to his statement last month that the country in 2027 “might become one of the world’s three largest producers” of those batteries.
Analysts see positives and negatives in those EV ambitions.

“Indonesia has a significant advantage when it comes to EV adoption,” Vivek Lath, a partner at consultancy McKinsey in Singapore, told Nikkei Asia in December, citing its nickel holdings and battery-related projects. “We expect a significant uptake in Indonesia going forward. And this is across the EV value chain.” McKinsey in an October note said Indonesia’s revenue pool from that chain is projected to reach nearly $50bn by 2035.


Hyundai Motor Ioniq 5 electric vehicles being made at a Hyundai plant in Cikarang, Indonesia. The South Korean automaker is among foreign manufacturers that see promise in the country © Bloomberg

The government is also preparing incentives, including subsidies, and is targeting increasing electric car sales to 20 per cent of total car sales in 2025. Indonesia’s electric car sales shot to over 10,000 vehicles last year, from around 600 in 2021, according to wholesale data from the Association of Indonesia Automotive Industries, or Gaikindo. More than a million gasoline cars were sold the same year.

“These incentives will be given based on calculations and studies [into similar policies] in other countries, mainly [in] Europe,” Indonesian President Joko Widodo said in December. “We’ll reveal [them] after we finalise the calculations.”

Pandjaitan said the planned incentives, soon to be announced, include an approximately 7mn rupiah ($470) subsidy for each e-scooter purchase.


Indonesian ride-hailing company Gojek showed off its e-scooter fleet during the G-20 summit on Bali in November © Erwida Maulia

But the plan has stirred controversy, with critics arguing subsidies should be directed to the poor rather than helping people with money to buy electric cars. And concerns over potential conflicts of interest have sparked scrutiny into corporate-political relationships.

Among government officials and politicians affiliated with local companies getting into EV and battery businesses are Pandjaitan, whose family owns a stake in TBS, and Moeldoko, the presidential chief of staff, who runs electric bus company Mobil Anak Bangsa Indonesia, which is looking to supply government offices and SOEs. He also chairs the Indonesian EV Industry Association.

Septian Hario Seto, Pandjaitan’s deputy, told Nikkei that the co-ordinating minister now owns just 9.9 per cent of investment firm Toba Sejahtra, which has a minority stake in TBS, and that none of Toba’s executives or commissioners are involved in either TBS or Electrum. Pandjaitan “is actually in the process of selling his stake [in Toba]. He’s looking for a buyer,” Seto said.

A spokesperson at Moeldoko’s office overseeing transportation had not responded to Nikkei’s requests for comment by publication time. But Moeldoko, answering critics, told local news outlet detikX in October that the planned incentives would not benefit just certain groups of people, but “offer opportunities for the private sector” overall by providing “market certainty”.

Andry Satrio Nugroho, an analyst at the Institute for Development of Economics and Finance, a Jakarta-based think-tank, said nickel mining and processing are dominated by companies connected to local and national politicians. Environmentalists see such links as allowing companies to get away with poor mining and industrial practices.

Nugroho calls the situation “a form of moral hazard afflicting upstream to downstream” EV-related businesses and that political interests could lead to poorly targeted subsidies that, rather than incentivising EV users, would “only actually benefit” producers and EV dealers.

A version of this article was first published by Nikkei Asia on February 3 2023. ©2023 Nikkei Inc. All rights reserved.
Wow wuling stepped in in 2022 and dominated. Wonder when BYD will enter the market. BYD is even more competitive.
Wow wuling stepped in in 2022 and dominated. Wonder when BYD will enter the market. BYD is even more competitive.

There is report that BYD is mulling to come to Indonesia as well.

Currently the one that is dominating Indonesia EV car market is Hyundai EV........

Hyundai to Double EV Production in Indonesia amid Soaring Demand​

April 15, 2023 | 6:32 am


Hyundai Ioniq 5.

Jakarta. South Korean automaker Hyundai plans to boost production of electric vehicle model Ioniq 5 which now enjoys huge demand in Indonesia to 1,000 units per month, more than double the current output from its assembly plant in West Java, an executive said on Friday.

The production boost is riding momentum on the government’s generous incentive awarded for the purchase of EVs which has 40 percent or more locally made components.

Under the incentive program, the government shoulders 10 percent VAT in every purchase, meaning that a buyer can save at least Rp 60 million for a brand new Ioniq 5.

The incentive drives up the demand for Ioniq even more, with around 4,000 orders on the waiting list in the meantime.

"Ioniq 5 is recently becoming the Hyundai model that attracts high demand from consumers. Hyundai will increase the supply of Ioniq 5, currently one of the most popular EV brands in Indonesia," Woojune Cha, the CEO of the local unit Hyundai Motors Indonesia, said in a statement.

“The decision is to make sure that consumers can fully enjoy the benefit of the tax incentive,” he added.

The price of Ioniq 5 starts from Rp 673 million including VAT in the Indonesian market. Ioniq goes down in history as the first EV model to be assembled in the country after Hyundai completed a major assembly plant in Cikarang.

It was introduced during the Indonesia International Motor Show last March.

Without the expanded capacity, a consumer will have to wait until six months to get Ioniq delivered.

PT INKA factory in Madiun, East Java


Indonesia's Bio Farma Opens Vaccine Technology Transfer with Ghana​

21 May 2023 16:12 WIB

TEMPO.CO, Jakarta - State-owned pharmaceutical company PT Bio Farma has opened the opportunity for vaccine technology transfer with the Republic of Ghana, West Africa, as part of Indonesia's commitment to strengthening the global health system for facing future pandemics.

Ghana is planning to use Bio Farma as a benchmark on how to store, produce, and distribute vaccines, the head of Bio Farma's corporate communications department, Iwan Setiawan, said here on Friday.

Seven health sector delegates from Ghana were in Bandung, West Java, on Thursday to inspect and learn about Bio Farma's work mechanism.

Bio Farma has the capacity to produce up to 3.2 billion doses of vaccines per year. At least 70 percent of them are intended for export to 135 countries.

"Bio Farma also has products that have already been used in Ghana through UNICEF, such as oral type 1 & 3 polio vaccines (bOPV). There are also vaccines sent to other countries through the bilateral mechanism, UNICEF, and businesses," he added.

Bio Farma also managed to produce more than 5 million doses of the IndoVac COVID-19 vaccine in 2022 to meet the demand of the Health Ministry and to fulfill export opportunities.
"Moreover, Bio Farma is also conducting technology transfer for the development of the first mRNA-based vaccine in Indonesia," Setiawan said.

He also highlighted that Ghana is interested in carrying out technology transfer with Bio Farma.

"We are open with anyone. If there are those that fit us and they have the facility, we are ready to collaborate," he said.

“The pharmaceutical industry has high requirements. There are several in Ghana that are ready. We are ready to conduct technology transfer if their facilities are ready," he said.

The Republic of Ghana enacted the National Vaccine Institute Bill in 2023 and founded the National Vaccine Institution on May 10, 2023, to develop policy direction as well as vaccine production independently.

One of the delegates from Ghana, William Opare, said that his party is facing a challenge in vaccinating around 33 million Ghanaian citizens.

There are also several parents who are not willing to bring their children for immunization due to hesitancy. There is a negative rumor spreading around immunization, he highlighted.
He also lauded the immunization program mechanism in Indonesia, which is targeting a population of around 234 million in several vast islands.



Indonesia's Adaro plans $728 mln aluminium smelter in Borneo​

JAKARTA, Dec 23 (Reuters) - A unit of Indonesian coal company PT Adaro Energy (ADRO.JK) plans to build a $728 million aluminium smelter in a new industrial estate on Borneo island, the company said in a statement on Thursday.

PT Adaro Aluminium Indonesia this week signed a letter of intent to invest in the smelter project to be built in the Green Industrial Park Indonesia in North Kalimantan province, it said in a statement.

PT Kalimantan Industrial Park Indonesia, a consortium led by Adaro's President Director Garibaldi Thohir, is developing the new estate.

The government has branded the park "green" due to a plan to power industrial activities there with electricity from an 11,000-megawatt hydropower plant in the Kayan river.

Adaro said it would team up with domestic and international partners for the smelter, without naming any. It said the project is part of the firm's green transformation initiative.

"We are optimistic that global demand for aluminium products will keep rising, particularly for cable, battery, and chassis," Adaro's Vice President Director, Ario Rachmat, said in the statement.

"We also expect that, going forward, other industries, which require aluminium, such as solar panels and electric vehicles, can be produced in this facility."

Reporting by Gayatri Suroyo and Fransiska Nangoy Editing by Ed Davies


Shandong Nanshan may expand Indonesia site into $6 billion aluminium complex​


15 May 2023

SINGAPORE/JAKARTA : China's Shandong Nanshan plans to expand its new Indonesian alumina plant to a $6 billion aluminium smelting complex by 2028, a company executive said, which would be among the largest foreign investments in the resource-rich nation.

Shandong Nanshan is among a growing group of private Chinese companies making multi-billion-dollar investments in Southeast Asia in sectors such as metal processing and oil refining amid a cooling Chinese economy and tighter regulatory scrutiny at home.

The company started up its 2 million tonnes per year (tpy) alumina facility last November at the Galang Batang special economic zone (SEZ) on the island of Bintan,located about one hour by ferry from Singapore.

Now running at full capacity, Nanshan processes bauxite mined from Indonesia's Kalimantan region and exports alumina to neighbouring Malaysia and also sells to international traders.

Nanshan, with plans to bring more Chinese firms to the site, intends to start building a 250,000-tpy aluminium smelting unit later this year, part of a plan to construct a 1 million-tpy aluminium plant by 2028, a company executive said last week, asking to remain unidentified, eventually producing high-end aluminium ingots for the aircraft and electric vehicle industries.

Based in China's Shandong province, Nanshan Group says its existing aluminium customers include Airbus, Boeing and Tesla.

To fuel the alumina facility, Nanshan operates a 160-megawatt (MW) coal-based power plant within the SEZ. The site's general manager, Hao Weisong, said on Tuesday that the company plans a 100-MW solar power facility and has also agreed to buy renewable power from state utility Perusahaan Listrik Negara.

The SEZ's operating company, PT Bintan Alumina Indonesia, was last year granted a full waiver of income tax for 20 years, Susiwijono Moegiarso, secretary general of the National Council of Special Economic Zones, said on Friday.

He said investment at the site has thus far totalled 17 trillion rupiah ($1.16 billion).

Indonesian President Joko Widodo, who visited the site last year, is focusing on minerals processing to extract more value from its vast mining sector, and the government may impose an export ban in June on unprocessed minerals, including bauxite.

Moegiarso said that the SEZ has committed to supplying 33.8 per cent of its power from renewable sources by 2032.

($1 = 14,695 Rupiah)


Indonesia to Ban Bauxite Export from June 2023: An Explainer​

December 28, 2022Posted
byASEAN Briefing
Written byQian ZhouReading
Time:3 minutes

On December 21, 2022, President Joko Widodo announced that Indonesia will impose a bauxite export ban starting from June 2023, in a move to shore up the domestic processing of its mineral resources. In this article, we explain what the bauxite export ban is, why Indonesia introduces the bauxite export ban, and what the potential impacts are.

What is the bauxite export ban?​

Bauxite is the best and only material for large-scale production of aluminum, a metal that is widely used for aircraft construction, building materials, consumer durables, electronic conductors, and chemical and food-processing equipment.

Indonesia is the world’s sixth-largest bauxite producer and has the fifth-largest reserves, according to a US Geological Survey.

According to President Widodo’s announcement, starting from June 2023, the government will impose a ban on exports of bauxite ore. Moreover, exports of bleached bauxite will also be banned.

Why does Indonesia introduce the bauxite export ban?​

Indonesia introduces the bauxite ban to replicate its success in nickel processing after banning the export of raw nickel material in January 2020.

According to Indonesian Chamber of Commerce and Industry chairman Arsjad Rasjid, the export value of the country’s Nickel export reached US$20.9 billion in 2021 and is expected to exceed US$30 billion in 2022, from only US$1.1 billion at the end of 2014. Arsjad believes the export ban can benefit Indonesia’s economy.

Now through the bauxite ban, President Widodo hopes more value can be added domestically, more jobs can be created, more foreign exchange reserves can be increased, and more equitable economic growth can be achieved.

“The government will continue to consistently carry out domestic down streaming so that added value is enjoyed domestically for the progress and welfare of the people,” President Widodo wrote on Facebook on December 21, 2022.

What are the impacts of the bauxite export ban?​

Economic growth of Indonesia​

As introduced above, the Indonesian government believes that the export ban can benefit its economy by adding more value locally. Especially for regions where the bauxite reserves are located and where the bauxite industrial chain will be developed, huge economic growth could be expected.

Development of Indonesia’s electronic vehicles industry​

Besides, the bauxite ban might be a necessary step for Indonesia to build an ecosystem for electric vehicles.

Similar to nickel, bauxite is also a key material in the production of electric vehicles—nickel is used for making lithium batteries, while aluminum made from bauxite is the material to build lightweight and strong electric vehicles.

It’s reported that Indonesia is finalizing plans to subsidize electric vehicle sales and President Widodo has ordered government officials to use electric vehicles for official purposes.

Impact on China​

Indonesia has been the third largest bauxite supplier to China in recent years, behind Guinea and Australia. According to Indonesia’s customs data, China imported 17.8 million tons of bauxite from Indonesia in 2021, accounting for about 15 percent of its total imports.
However, China’s reliance on Indonesia for bauxite export has been declining.

Before 2014, Indonesia was China’s largest bauxite supplier. 80 percent to 90 percent of China’s imports came from Indonesia, and the high concentration of imports made the import volume of bauxite easy to be affected by Indonesian trade policies. In 2012 and 2014, the import volume of bauxite shrank significantly under the export ban on Indonesian bauxite. Since then, Australia and Guinea have become the largest two suppliers of bauxite to China. In addition, China has expanded its import scope to Malaysia, India, Brazil, Ghana, and other countries.

Given this situation, Indonesia’s export ban on bauxite ore may only have a limited impact on China’s aluminum industry.


What to watch next?​

Indonesia is rich in multiple resources and the export ban on bauxite ore won’t be the last one.

According to Indonesia’s Mining Law, the export of other unprocessed minerals such as copper will also be stopped, though the timing of the export ban on other minerals hasn’t been specified.

As President Widodo said, “Basically, at the end of the day, we don’t want to sell raw materials. We want to sell something semi-ready.”

Flood of Orders from KAI, INKA Inaugurates New Factory in Banyuwangi

Anisa Indraini - detikFinance
Thursday, 09 Mar 2023 16:57 WIB


INKA factory in Banyuwangi (Photo: Anisa Indraini/detikcom)

Banyuwangi -

PT Industri Kereta Api / INKA (Persero) inaugurated a new factory in Banyuwangi, East Java. The presence of the new factory is to increase its production capacity which is currently only carried out in Madiun, East Java.

"With the operation of the Banyuwangi workshop, we will produce not only in Madiun, so some will be in Banyuwangi. We will start working here, from today onwards there will be production activities in Banyuwangi," said President Director of PT INKA (Persero) Eko Purwanto in the inauguration in Banyuwangi, East Java, Thursday (9/3/2023).

This is in line with the wholesale orders from PT KAI (Persero) and its subsidiary PT Kereta Commuter Indonesia (KCI). Starting from the contract for the procurement of 16 new KRL trainsets to be fulfilled in 2025, 1 set consisting of 12 carriages, the contract for the procurement of 612 units of SS New Generation trains for the 2023-2026 Replacement program, and the contract for the procurement of 10 Luxury Train Cars of 26 seats for Argo Lawu Train, Argo Dwipangga Train, Taksaka Train and 1 Maintenance Reserve Car for 2023-2024.

Eko said that KCI's order for KRL could only be fulfilled in 2025 because several more preparations were needed, one of which was limited production sites. Not to mention that INKA also claimed to get orders from other countries.

"The challenge for KRL is that we from INKA have insufficient capacity for now because the main workshop is still in Madiun and some orders are quite massive this year so we need to increase that capacity, so we start operating workshops in Banyuwangi," he said.

The INKA factory in Banyuwangi is currently only completed for phase 1 of development, namely the construction of buildings and the installation of cranes. It has spent Rp 603 billion from the State Capital Participation (PMN).


INKA Factory in Banyuwangi Photo: Anisa Indraini/detikcom

The INKA factory in Banyuwangi will continue to be developed into phase 2 (2023-2025), namely in the form of building construction, machine installation (fabrication, finishing and final testing machines), construction of a 1 km test track, mosque construction, and construction of a stabling area with an investment need of IDR 331.5 billion. At this stage, the factory is targeted to produce 250 cars per year.

Then in phase 3 (2026 and above) the production target will be increased to 500 cars / year. Because at this stage it is planned that there has been an additional 3 km test track capacity, museum construction, guest house construction and management office construction with an investment value of IDR 3.01 trillion.

INKA's factory in Banyuwangi has an area of 83.5 hectares (Ha). Production facilities for trains with aluminum and stainless steel carbodies, as well as for high quality projects.

On the same occasion, Deputy Minister of SOEs Kartika Wirjoatmodjo hopes that the additional INKA factory in Banyuwangi can open new jobs, drive the local economy, and accelerate economic recovery in the local area.

"The location of Banyuwangi which is close to the port will also accelerate the logistics process of the workshop so that it will support the growth of the railway industry and together the growth of the agricultural industry, tourism, fisheries, MSMEs and others will be a driver of the national economy," said Tiko as he is familiarly called.

What's happening with stadler inka? Anything new with their partnership?
What's happening with stadler inka? Anything new with their partnership?

Second factory in Banyuwangi is JV of INKA and Stadler (Europe). The factory will commence its operation to fulfil demand from PT KAI inshaAllah as the contract has been signed and the main factory in Madiun is bussy fulfilling export market from New Zealand and Australia.

Second factory initial plan is to serve Export market like Europe and others as it is located near port.

The second factory in Banyuwangi is just completed for its first phase development, there will be additional investment for 2024 inshaAllah, for PT INKA it needs to invest around 1.2 trillion Rupiah next year for the second factory, Stadler will also need to invest, or their stakes will be diluted.
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Investing IDR 74 Trillion in Indonesia, VW Ready to Build Electric Vehicle Battery Factory This Year

Iqbal Dwi Purnama Sunday, May 28, 2023 - 15:05 PM

JAKARTA - German car manufacturer, Volkswagen or VW is certain to establish an electric vehicle battery factory in Indonesia this year. This news was conveyed by the Secretary of the Ministry of Investment/Investment Coordinating Board (BKPM) Ikmal Lukman.

Ikmal further explained, VW is currently preparing a business plan that will be completed in the next few months before establishing an electric vehicle battery factory in Indonesia. The investment value of VW is estimated to reach USD5 billion or equivalent to Rp74.2 trillion (Exchange Rate Rp14,854 / USD).

"They are starting to put together a business plan, maybe in a few months there will be their company here. Local factors have been, later they will establish an electric vehicle battery factory," Ikmal said when met at the 50th Anniversary Celebration of the Ministry of Investment / BKPM, Sunday (28/5/2023).

According to Ikmal, VW's entry into the downstream nickel industry is a positive catalyst later for the country's foreign exchange. Because VW will also supply the needs of electric vehicle batteries throughout the world.

"They will supply the needs of complementary batteries in the world, it is a matter of pride for us because it has been trusted, the important thing is good stability, God willing, VW can run," he continued.

However, regarding the location of the factory establishment, Ikmal admitted that he could not convey the details. Because of fear that there will be speculation from land prices in the region.

"God willing, this year (build a factory) if they have chosen the location, actually there is already a location, only we cannot be told. So they are not only one industrial area, they can also be others," said Lukman.

Ikmal revealed, after working on vehicle batteries, it is possible that VW is also ready to produce electric cars in Indonesia. So it is expected that VW's entry into Indonesia will open wider employment opportunities later. "Electric batteries will be with the car, but initially the electric battery first, if the car is not difficult, because most of the bodies have been made (in Indonesia)," he concluded.

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Pertamina Lubricants Owns the Largest Lubricant Research and Innovation Center in Indonesia​

News from Ichsan Emrald Alamsyah • 11 hours ago


PT Pertamina Lubricants, a subsidiary of Pertamina Commercial and Trading Subholding, inaugurated the largest lubricant research and innovation center in Indonesia, the Lubricants Technology Center in Plumpang, North Jakarta.© Pertamina dock

REPUBLIKA.CO.ID, JAKARTA – PT Pertamina Lubricants, a subsidiary of Pertamina Commercial and Trading Subholding, inaugurated the largest lubricant research and innovation center in Indonesia, the Lubricants Technology Center in Plumpang, North Jakarta.

With an area of 12,500 square meters, the Lubricants Technology Center is equipped with modern facilities and professional human resources to meet the needs of lubricants in the Indonesian market and 14 countries in the world, including Australia, Thailand, and South Africa.

PTPL President Director Werry Prayogi said the Lubricants Technology Center will encourage the achievement of the aspiration to become a leading lubricant company, The Leading Asian Champion, with products and services that are more adaptive, responsive, and flexible in various automotive and industrial applications.

Lubricants Technology Center is an integrated technology center in combining product development research activities and after-sales services, namely product research and development laboratories to support applied research, selection of additive technology and formulation of lubricant products and special chemicals.

Then, combining an oil clinic laboratory to conduct comprehensive oil analysis and supervision supported by experienced technical support, as well as an integrated lubrication management academy with customer education and training facilities.

He explained that laboratory activities at the Lubricants Technology Center follow the international standards of the American Society for Testing and Materials. In addition, both laboratories at the Lubricants Technology Center are ISO 17025:2017 certified by the National Accreditation Committee (KAN).

Therefore, Lubricants Technology Center is a strategic investment to accelerate Pertamina Lubricants' business growth in the face of increasingly dynamic market changes. Lubricants Technology Center also answers the challenges of the rapid growth of various sectors in Indonesia which has an impact on increasing the need for quality lubricants.

"As a market leader, LTC strengthens our commitment and capability in product and service innovation," he said in a statement received by Republika.co.id, Tuesday (30/5/2023).

Werry continued, currently lubricant consumers have adequate knowledge so that Pertamina Lubricants is required to provide additional benefits such as fuel economy and the ability to protect engines. In the use of business operation lubricants, Pertamina lubricants are also able to increase the efficiency and productivity of customer operations.

In the future, the Lubricants Technology Center is expected to become a mecca for the development of lubricants and specialty chemicals, including answering the need for lubricants that are more environmentally friendly and able to contribute to reducing carbon footprint. This is in line with the government's efforts to achieve net zero emissions by 2060.

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