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Diminati Investor Raksasa, PTPP Hadiri Seremoni Implementasi Rencana Tahap Kedua Industri Baterai Listrik Terintegrasi di KIT Batang
09 June 2022

Interested by Giant Investors, PTPP Attends the Implementation Ceremony of the Planned Second Phase of the Integrated Electric Battery Industry at KIT Batang

PT PP (Persero) Tbk, one of the leading, largest, and leading construction and investment companies in Indonesia (“PTPP”) attended the Implementation Ceremony of the Second Phase of the Integrated Electric Battery Industry Plan in the Integrated Industrial Estate (“KIT”) Batang or Grand Batang City. The ceremony for the implementation of the plan for the second phase of the battery industry was marked by a button-pressing procession by the President of the Republic of Indonesia, Joko Widodo, which was held on Wednesday (08/06) at the KIT Batang location, Central Java. The event was also attended by the Ambassador of the Republic of Korea to Indonesia Park Tae-Sung, Minister of Investment or Head of BKPM Bahlil Lahadalia, Minister of State Secretary Pratikno, Minister of SOEs Erick Thohir, President of LG Energy Solution Bang Soo Lee, Governor of Central Java Province Ganjar Pranowo, Regent Batang Wihaji, PTPP President Director Novel Arsyad, PTPP Corporate Strategy & HCM Director Sinur Linda Gustina, PTPP Building Operations Director Anton Satyo Hendriatmo and other officials. The implementation ceremony was held at the project site by implementing strict Covid-19 health protocols for invited guests who attended and practicing social distancing.

LG Energy Solution is part of LG Chem, a subsidiary of the South Korean LG Group. The company will occupy an area of ​​275 (two hundred and seventy five) hectares which will apply the latest technology from the LG consortium. LG Energy Solution entered into the second phase of Batang KIT development to realize the second phase of the integrated electric battery industry investment plan. This was done following the groundbreaking event for a battery cell facility worth a total of USD 1.1 billion which was held in Karawang, West Java in September 2021.

This grand package project will make a major contribution to the global secondary battery industry in the next 26 (twenty six) years. The Indonesian government wants to build a large electric vehicle ecosystem in Indonesia covering production from upstream to downstream. This starts from nickel mining and then smelters to refineries to the construction of the cathode and precursor industries then goes to lithium batteries, EV batteries, electric batteries to electric cars. After electric cars, there is another addition, namely recycling the electric battery so that it really runs from upstream to downstream in Indonesia.

PTPP greatly appreciates and is pleased with the implementation of the plan for the second phase of the battery industry at KIT Batang. The presence of LG Energy Solution proves that KIT Batang has many advantages and potentials that attract giant investors to invest their capital there. This will certainly have many positive impacts on the Indonesian economy.

KIT Batang is managed and owned by a Consortium of BUMN and Perumda, which consists of PT Kawasan Industri Wijayakusuma (Persero), PT PP (Persero) Tbk, PT Perkebunan Nusantara IX (Persero), and Perumda Batang. Apart from being one of the companies managing the Batang KIT, PTPP also acts as the main contractor in the construction of several projects in the area. Some of the projects that have been and are being worked on by PTPP in KIT Batang, among others: land maturation projects, construction of flats owned by the Ministry of PUPR, construction of Jalan KIT Batang Package 1.4 owned by the Ministry of PUPR, construction of the Cirebon-Semarang natural gas transmission pipeline. Phase I of the Semarang-Batang Section which is owned by the Ministry of Energy and Mineral Resources, and the construction of the First Glass Factory in Indonesia which is owned by KCC Glass Corporation Ltd.

With the implementation of this Ceremony, it proves that KIT Batang is in great demand by giant investors. This is evident from the sale of the land area of ​​the first phase of the Batang KIT covering an area of ​​450 hectares so that currently the development of the Batang KIT is entering the second phase where the development of the area covers an area of ​​1,000 hectares. KIT Batang is one of the selected areas in Indonesia that is offered as a new industrial center in the hope of attracting foreign investors to invest in Indonesia. Meanwhile, PTPP as a member of the consortium which also acts as the largest and best national contractor is currently ready to synergize with LG Energy Solution in building the highest quality factory.