LG Energy Solution’s withdrawal from US$7.7 billion Indonesia battery project
South Korea’s battery manufacturer consortium that includes LG Energy Solution, LG Chem, LX International Corp, and other partners has decided to withdraw its US$7.7 billion investment to establish an electric vehicle (EV) battery supply chain in Indonesia. This is another major blow for Indonesian investment after last year’s decision from BASF and Eramet to abort US$2.8 billion nickel project.
Revisiting Batang Industropolis
Allmed Medical, a global leader in wound care and infection control firm, has recently started construction of its largest manufacturing facility at Industropolis Batang Special Economic Zone (SEZ) with a total investment of US$100 million (approximately Rp1.7 trillion).
Hyundai and the Policy Reality of Electric Vehicles
Hyundai Motor Company recently announced a major strategic shift: doubling its global hybrid vehicle lineup from 7 to 14 models. This move reflects the company’s adaptation to the realities of the market—namely, the declining global demand for battery electric vehicles (BEVs) and inconsistent regulations across various countries, including Indonesia.
Chandra Asri & The Singapore acquisition
Shell plc, through its subsidiary Shell Singapore Pte. Ltd, has completed the previously announced sale of its Shell Energy and Chemicals Park (SECP) to CAPGC Pte. Ltd on March 28, 2025. CAPGC is a joint venture firm that is majority-owned and operated by Chandra Asri (TPIA), the leading chemical and infrastructure company in Indonesia and minority-owned by Glencore through their respective subsidiary companies.
The growing EV ecosystem
State-owned electricity firm PLN has provided a total of 3,500 public electric vehicle charging stations (SPKLU) at 2,412 strategic points across Indonesia for anticipating the surge in EV users during the 2025 Eid homecoming season. This year, EV usage during Eid homecoming is projected to reach 21,570 vehicles, surged from 4,314 vehicles last year.
New cement project in Central Java?
Central Java governor Ahmad Luthfi, who is now cadre of President Prabowo’s Gerindra Party, has just welcomed leaders of PT Anugerah Andalan Asia, which plans to build new cement mill in Wonogiri Regency with estimated investment of Rp6 trillion. What happened to the moratorium policy from Central Government?
Berger heats up paint industry
Berger Paints, Singapore paint producer, has acquired 100% of Asian Paints International Pvt Ltd’s subsidiaries, PT Asian Paints Indonesia and PT Asian Paints Color Indonesia for SG$7.5 million. Both subsidiaries own manufacturing facility located in Karawang Industrial Estate, West Java province that spans in 5.3 hectares of land.
EV Update
Shares of Tesla, used to be the world’s largest EV manufacturer, has collapsed 50% since Elon Musk joined Trump administration. BYD, which has taken over the top spot from Tesla, on the other hand, gained nearly 30% in the same period.
Reality check on Uni-Charm Indonesia
Shares of diapers manufacturer PT Uni-Charm Indonesia Tbk (UCID), a joint venture between Sinarmas Group (Widjaja Family) and Unicharm Corporation (Japan), ended lower by 0.74% on Tuesday (Mar 11) as investors responded negatively the company’s financial performance last year.
The mini Apple deal
Indonesian government has finally accepted US$160 million ‘investment commitment’ from Apple Inc, far below initial demand of US$1 billion. With the so-called ‘innovation investment scheme’ to meet 35 percent local content, Apple Inc may resume sales of iPhone 16 in the country.