South Korea is believed to be relying on Indonesia in its efforts to improve the supply chain for batteries and electric vehicle components. This was done so that they were completely independent of China.
These signs were mentioned by Wapcar, Wednesday (13/9/2023), which can be seen from South Korea’s seriousness in collaborating with Indonesia in developing electric cars and their supply chain. Even during the 43rd ASEAN Summit in Jakarta which took place last week, South Korean President Yoon Suk-yeol, who came to Jakarta, brought conglomerates from their country to show their seriousness to Indonesia.
“The conglomerate consists of Executive Chairman of Hyundai Motor Group Chung Euisun, Chairman of LG Group Koo Kwang-mo, Chairman of Lotte Group Shin Dong-bin and Chairman of LS Koo Ja-eun,” said Wapcar.
According to Wapcar, South Korean big-class entrepreneurs will be involved in various business activities in Indonesia. Starting from witnessing the signing of a memorandum of understanding (MoU) carried out by various South Korean companies to announcing the implementation of a joint venture with around 20 Indonesian parties.
“It is very important to cooperate with Indonesia, a country with abundant raw materials (for batteries) such as tin, manganese, bauxite, cobalt and nickel,” said Shin Yoon-seong, a researcher at the Korea Institute of Industrial Economics & Trade
Experts in South Korea indeed believe that Indonesia is key in reducing their dependence on China. Especially in the emerging electric vehicle and battery supply chain.
They also want to follow the decision of the United States and Europe to effectively avoid collaborating with China in the global electric car market.
“It is strategically important to create mutually beneficial synergies with Southeast Asian countries like Indonesia that have abundant mineral and raw material reserves,” Kim Da-jong, a business professor at Sejong University, told The Korea Herald.
It is known that Hyundai continues to increase its electric vehicle business in Indonesia. The company even has a fully operational factory in Bekasi.
In July 2023, they managed to sell 3,913 electric cars. In detail, there are 3,819 Hyundai Ioniq 5 units. The rest is the newly launched Hyundai Ioniq 6.
Construction of an electric car battery factory has also begun with LG Energy Solution and Hyundai Mobis. It is estimated that the battery factory will operate in 2024.
