The Indonesia Investment Authority is set to launch an electric vehicle (EV) fund worth $2 billion with China’s battery maker CATL and CMB International.
The announcement of the fund was made by the fund’s CEO Ridha Wirakusumah at a conference at the G20 summit in Bali, signed with executives from CMB International and CATL.
The fund will invest in the EV value chain to capture a market that is expected to grow fast globally, driven by countries’ pledges to reduce greenhouse gas emissions, Ridha said.
“With CATL and CMB International as the main partners, we are looking for limited partners to invest in the green EV fund, to seize this EV value chain opportunity primarily in Indonesia,” she added.
EV Boom
Indonesia’s own EV market is on track to grow, with 2.1 million electric motorcycles and 400,000 electric cars expected to be sold by 2025, Ridha said.
Indonesia is keen to develop its own EV and battery industries at home, after banning exports of nickel ore to ensure supply for investors since 2020.
Earlier this year, CATL announced a $6-billion power battery project in Indonesia, in partnership with Indonesian companies.
- Reuters, with additional editing from Alfie Habershon
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