Foxconn Develops Electric Cars in Indonesia, Funds Amounting To Rp 114 Trillion

Foxconn
Foxconn

Foxconn is reported to have collaborated with the Ministry of Investment of the Republic of Indonesia to develop electric cars in the country. The agreement took place a few days ago, after the Apple supplier company signed a memorandum of understanding (MoU) with Indonesia.

According to the Antara report, Foxconn will later invest in building an electric vehicle ecosystem in the country. This includes the manufacture of batteries, two-wheeled and four-wheeled electric vehicles, to electric buses in Indonesia.

This collaboration will also include the development of EV supporting industries, such as energy storage systems (ESS), battery exchange/swap stations, battery recycling, as well as research and development (R&D) in the field of electric batteries.

“The Indonesian government will seriously oversee this investment plan, with BUMN partners and national entrepreneurs. Under the administration of President Joko Widodo, Indonesia is very focused on encouraging sustainable investment, especially promoting green energy and green industry," said Investment Minister, Bahlil Lahadalia, quoted from Antara.

In total, the investment made in this electric vehicle ecosystem project is estimated at US$8 billion or equivalent to Rp. 114 trillion. This amount is estimated to generate a market capitalization of more than US$100 billion by 2030.

SOE Minister Erick Thohir explained that the cooperation between Foxconn and Indonesia is not only profitable for the companies involved. However, the positive impact will be felt widely.

"This scheme will not only bring investment and multiplier effects to MSMEs and local companies, but will also increase the ability of Indonesian workers through research and development as well as the transfer of knowledge and technology of electric vehicles," said Erick.

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