The Indonesia Investment Authority (equivalent to Malaysia’s Khazanah Nasional, the country’s sovereign wealth fund) will invest in the establishment of a Green Fund, which will focus on end-to-end electric vehicles (EV) value chain investment, with Chinese battery giant CATL and CMB International.
The Green Fund will serve as a platform to seize investment opportunities in the emerging EV ecosystem and aims to deliver attractive long-term sustainable returns to its investors. With the parties’ concerted efforts, INA believes the size of the fund would reach up to USD 2 billion.
A Memorandum of Understanding (MoU) was signed at the G20 summit by INA CEO Ridha Wirakusumah and company executives from CATL and CMB International.
Also read: To overtake Thailand, Indonesia makes Tesla a renewable energy offer it cannot refuse
Wirakusumah said, “This MoU is part of our journey and commitment to supporting Indonesia’s sustainability and commitment to net zero emission. Electrification is an attractive solution for conventional energy, helping to reduce environmental impact whilst also tapping into a potential growth market.”
“The strategic partnership with CATL, a global leader in new energy technology innovation, and CMBI as a highly regarded financial institution with proven investment experience in the EV value chain align with INA’s mission to create long-term prosperity for future generations through sustainable investments,” added Wirakusumah.
Indonesia has strong ambitions to be an EV and battery producer, after banning the export of nickel to protect its supply for investors.
Also read: Tesla signs 5-year contract worth USD 5b with Indonesia to buy nickel for its batteries
The country’s large nickel reserves have attracted investment from LG Chem (which is currently building a USD 9.8 billion end-to-end battery manufacturing facility) and CATL (USD 6 billion). Car manufacturers such as Toyota and Hyundai have also chipped in for EV-related investments in Indonesia.
Also read: Indonesia: We don’t do EVs just to go green, but to escape middle income trap
Source: Indonesia’s ‘Khazanah’ to set up USD 2b EV fund with CATL and CMB International
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