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Indonesia’s Industrial Export Ambitions

Hyundai Battery Factory in Cikarang, Start Production Next Year​

News from Tempo.co • 2 hours ago


TEMPO.CO, Jakarta - Hyundai's battery factory is being built in Cikarang, West Java. The assembly plant was built by Hyundai Motor Manufacturing Indonesia (HMMI) and Hyundai Mobis of Hyundai Motor Group.

The battery factory named Hyundai Energy Indonesia (HEI) is Hyundai Motor Group's first battery system assembly plant in Asean.

"HEI was established in December last year and will start production in July 2024. HEI built this plant for 13 months until March next year," said President Director of Hyundai Energy Indonesia, Changoug Hong at the Hyundai Energy Indonesia Ground Breaking ceremony in Cikarang today, Wednesday, May 31, 2023.

According to Hong, Hyundai's battery assembly plant costs an investment of US $ 60 million. When officially operational next year, the plant will employ more than 150 people.

"This Hyundai battery factory has a production capacity of 21,000 BSA units until next year and will further add 56,000 BSA units," he said.

Hyundai Energy Indonesia produces BSA (Battery System Assembly) with battery cells supplied from HLI Greenpower in Indonesia.

The BSA has an energy capacity of 65 kWh and the plant will produce battery control devices, safety devices, and protection devices.

Hyundai's battery plant will be capable of producing 1.4 GWh with two module production and one BSA Production Line by next year. After that, one module line, 2 BSA lines will be added and has a production capacity of 3.6 GWh. HEI will have a total production capacity of 5GWh in the near future.

Indonesian Aerospace Complex in Bandung, West Java.

Indonesian Aerospace has three factories in Java Island. For plane, UAV, aerostructure development and manufacturing, it is centered in Bandung city, West Java. They have other factories in other part of Java Island for other business lines (still related to aerospace industry).

This is the education tour inside Indonesian Aerospace factory in Bandung, West Java. They dont show every building, particularly they dont show KF21/IFX production line/Hangar. Indonesian Aerospace land complex is now expanded to accommodate new manufacturing facility for KF21/IFX plane. So the actual complex is bigger than what is stated in their official website, but maybe they will update the information in the future.

Regardless of that, for any Indonesian/Malaysian speakers, the explanation given by the Indonesian Aerospace education tour staff is rather good where he shows every building and what manufacturing process is conducted in each building.

I put it in this thread since Indonesian Aerospace has meaningful sales from overseas market particularly related to engineering service export, aerostructure export, and plane export. With N219 Basic, N219 Amphibious program, and their immediate plan with new composite manufacturing facility, the overseas sales has potency to be growing quite fast in the near future.

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N219 Amphibious Program

While N 219 basic program is still satisfied with local certification and so far doesnt have any immediate plan to get FAA license, which is more probably due to having more confidence with domestic and ASEAN market, N 219 Amphibious program in the other hand is confirmed will get through FAA certification process as soon as the first flying prototype is completed being manufactured. The funding for both prototyping and FAA certification have already been prepared Alhamdulillah.

The N219 Amphibious program is currently still in detail design phase and has been confirmed to start its prototype manufacturing next year in 2024 by seeing the budget for prototyping in 2024 has already been prepared. Due to its floating part, the plane design has to be improved in order to carry 19 passenger with additional weight on its floater part.

So the plane is targeting overseas market with this FAA license plan where American and Canadian market maybe become one of the company potential target markets beside domestic and Asia Pacific market. Expected to be rolled out in late 2025 and maiden flight in first semester of 2026.





Indonesian Aerospace has office in Seatle USA, so the office can be more utilized for marketing the plane in American continent.


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N 219 program update.

The plane has gotten contract from local cargo company for 11 planes and is expected to sign another contract from Indonesian Army for 10 planes somewhere this year (expected in July).

The configuration for the mass-produced N219 plane will be different with the current flying prototype due to customer demand, for example the door will be in the form of sliding door. There is also effort to improve the flight control system, which is developed locally by the company, after two flying prototypes tested for about 4 years and get local type certification in 2020 December.

I expect potential good sales for the plane from overseas market, particularly for civilian plane market whether for cargo or passenger configuration, if the plane can become proven platform after 5 years of real operation by an Indonesian cargo company and Indonesian Army.
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Indonesia's Bakrie Group seeks nickel mine, partners up for $9 bln EV project​

By Stefanno Sulaiman
January 20, 2023
7:00 PM GMT+7
Updated 5 months ago


Anindya Novan Bakrie, Bakrie Group President Director

JAKARTA, Jan 20 (Reuters) - Indonesian conglomerate Bakrie & Brothers (BNBR.JK) is looking to acquire a nickel mine in the resource-rich island of Sulawesi to supply a planned integrated industrial park to produce electric vehicle batteries, an executive said on Friday.

Also known as the Bakrie Group, which has interests in coal mining, media and property, the conglomerate launched a consortium last month with Chinese energy firm Envision and global commodity giant Glencore to explore investment into an industrial park for the global nickel supply chain.

The company's chief executive Anindya Bakrie told a forum on the sidelines of the World Economic Forum in Davos this week the planned 2,000-hectare (nearly 5,000 acres) park will need $9 billion worth of investments for everything from nickel smelting to manufacturing batteries.

Gilarsi W. Setijono, chief executive of Bakrie Group's EV distributor unit PT VKTR Teknologi Mobilitas, said the Indonesian company plans to acquire a nickel mine in Central or Southeast Sulawesi to supply the park.

"[The mine will] have enough reserves for around 140 Gigawatt-hours (of batteries) in the next 25 years," he told reporters, without disclosing further details.

The consortium, called Indo-pacific Net-zero Battery-materials Consortium (INBC), has set a target to start producing nickel-based precusors - used to make EV batteries - by 2026, with an annual capacity equivalent to 120 GWh to be sold to Britain and European markets, Gilarsi said.

It also aims to produce 20 GWh worth of EV batteries per year by 2028 for both domestic and export markets, he said.

The consortium will launch a pre-feasibility study in March and firm up each company's investment afterwards, Gilarsi said, noting that Bakrie Group hopes to become a controlling stakeholder.

Separately, Bakrie's VTKR plans to launch a $60 million initial public offering in the first half of 2023 to invest in its own EV production, Gilarsi said.

Indonesia is keen capitalise on its rich nickel reserves to develop battery and EV industries. Once a major exporter of nickel ore, it stopped outbound shipments of the raw material in 2020 to make sure investors have enough for domestic processing.

Envision and Glencore did not immediately respond to request for comments.

Reporting by Stefanno Sulaiman; Editing by Gayatri Suroyo and Kanupriya Kapoor

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Fujian to Invest Big in Batang Industrial Park​

Batang Industrial Park, Central Java

By Editorial Team 11/05/2023

The provincial administration of Fujian, China, plans to invest more in Central Java Province. It plans to build an energy factory on 200-hectare land in the Batang Integrated Industrial Park and more.

The cooperation agreement was signed during the 20th anniversary of the establishment of sister-province relations between Central Java and Fujian at Ghradhika Bhakti Praja on Wednesday.

Present at the event were CPC's Fujian Provincial Committee secretary Zhou Zuyi, Chinese Ambassador to Indonesia Lu Kang, Fuzhou mayor Zhang Heping, Central Java governor Ganjar Pranowo, and Semarang Mayor Hevearita Gunaryanti Rahayu."[Fujian] has proposed the need for 1,000 [hectares], 10,000 local workers at the least," Ganjar Pranowo said.

For the record, the land they asked for accounts for a quarter of the total land in the industrial park. Ganjar vowed that he would adjust the local educational curriculum to match relevant industrial requirements so that Central Java workers could be absorbed by these factories. "We will prepare skilled labors to fill the posts there, not only for manual but also middle and upper-class [jobs]," he said.

Batang, Central Java




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Foreign Direct Investment (FDI) in Indonesia Predicted to Increase 19% This Year​

11 hours ago

Industrial region in Karawang, West Java Province

KONTAN.CO.ID - JAKARTA. The government's efforts to boost investment are bearing fruit. The International Monetary Fund (IMF) estimates that Indonesia's foreign direct investment (FDI) will increase by 19% in 2023.

However, the Minister of Investment or Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia is optimistic that Indonesia's FDI this year can grow by more than 19%. This is in line with Indonesia's FDI growth which has reached 20% in the first quarter of 2023.

"This foreign direct investment is outside the upstream oil and gas and financial sectors," Bahlil said in a press conference, Friday (30/6).

Also Read: Minister Bahlil Affirms Nickel Ore Export Ban to Continue

Bahlil said the FDI estimate was the result of public and global trust in Indonesia's policies, including reforming regulations that hindered and slowed down the investment process.

Bahlil is optimistic, even though Indonesia will enter the political year, global investor confidence in Indonesia is still very strong. The statement was proven when he visited the United States (US) last week to convince investors from the country to invest in Indonesia.

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High Speed Train Development


Industrial Estate Developers Continue to Strengthen Their Business Throughout 2023​

11 hours ago

Cikarang Industrial Zone, West Java

KONTAN.CO.ID - JAKARTA. The business of managing industrial estates seems to continue to grow in the country. This is in line with the increasing demand for land in industrial estates from investors, both local and foreign.

Sanny Iskandar, Chairman of the Indonesian Industrial Estates Association (HKI) said, the interest of investors to come and buy land in various industrial estates tends to grow positively. Only, it must be admitted that the negotiation process until the sale of industrial estate land usually takes a long time.

Moreover, with the risk of global uncertainty, investors certainly have to consider many things before actually expanding to develop their business in an industrial area.

"Business continuity requires a conducive economic situation and security guarantees," he said on Friday (30/6) night.

In addition, prospective industrial estate tenants will also consider aspects of legal certainty related to spatial and land planning, business licensing, to synchronization of regulations between ministries/agencies or central and regional governments. These things can affect the process of buying and selling industrial estate land.

In general, Sanny assessed, sectors that are quite expansive in industrial estates today include data centers, food-beverages, health facilities, chemicals, and motor vehicles, including those oriented towards electrification.

Referring to data from the Ministry of Industry, currently the total number of industrial estate companies that have Industrial Estate Business Licenses (IUKI) is recorded at 129 industrial estates with a land area of 73,365 hectares (Ha).

Contacted separately, Corporate Secretary of PT PP (Persero) Tbk (PTPP) Bakhtiyar Effendi assessed that the trend of land sales in the Batang Integrated Industrial Estate (KIT) was quite positive to date. In this case, land absorption there is claimed to reach 100 hectares (Ha) per year.

Until now, there are 13 tenants occupying phase 1 of KIT Batang. Entering phase 2, there are already 2 tenants who ensure that they have joined KIT Batang. In addition, there are more than 20 prospective tenants who are ready to invest in KIT Batang phase 2.

"These tenants come from various countries, namely South Korea, the Netherlands, the United States, Taiwan, Singapore, China, and including Indonesia," he said, Friday (30/6).

In accordance with government directives, KIT Batang is intended for investors from high-tech industrial sectors, environmentally friendly industries, export-oriented industries, and labor-intensive industries that can absorb as many jobs as possible.

Although not open to the realization of its investment, PT PP said that the construction of a number of infrastructures in KIT Batang. Among them are land maturation, construction of regional roads and toll access, to the construction of workers' flats in KIT Batang.

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Why Passenger Train Manufacturing Is Booming In The U.S​

EV bike maker Alva mulls IPO amid limited production for slow demand


Workers assemble electric motorbikes in the Alva Manufacturing Facility at Delta Silicon Industrial Park in Cikarang, West Java, in this undated handout photograph provided in September 2023.(Alva Auto/-)

Mark Lempp (The Jakarta Post)
Jakarta ● Thu, September 21, 2023

Electric vehicle (EV) motorbike start-up Alva is considering issuing an initial public offering (IPO) and is planning to expand its sales network amid the homegrown firm’s low capacity utilization in the production of its proprietary EV two-wheeler brand.

Alva operates as part of PT Ilectra Motor Group (IMG), a joint venture formed in 2022 between Alpha JWC Ventures, Horizon Ventures and energy company PT Indika Energy.

“For us as a corporation, heading in that direction [of an IPO] is very much possible and something we have to consider,” Purbaja Pantja, CEO at IMG and chief investment officer at PT Indika Energy, said on Wednesday during a media visit to the Alva Manufacturing Facility in Cikarang, West Java.

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