Indonesia Enhancing Clean Energy and EV Cooperation with South Korea
Jakarta, The Gulf Observer: Indonesia is strengthening its collaboration with South Korea in the clean energy and electric vehicle (EV) sectors, aiming to meet its target of reducing greenhouse gas emissions by 31.89 percent by 2030. This strategic move comes as part of Indonesia’s efforts to accelerate sustainable development and energy transition.
Coordinating Minister for Economic Affairs Airlangga Hartarto met with Dong Choon Kim, Vice President of LG Chem and President of LG Chem’s Advanced Materials Company, and his delegation in Jakarta on Friday. During the meeting, they discussed expanding their cooperation in clean energy and the EV ecosystem.
“The LG Group’s support for the development of the EV ecosystem and clean energy in Indonesia is highly valued, and we hope to strengthen this partnership,” Minister Hartarto said in a statement following the meeting.
Both Hartarto and Kim acknowledged the challenges posed by the declining global demand for EVs but emphasized the significant potential for growth in Indonesia’s EV ecosystem.
Kim expressed appreciation for the ongoing support the Indonesian government has provided to LG Group, which has been active in the country’s manufacturing sector for many years. “For us, Indonesia will always be a strategic partner for LG Chem, especially in the green industry sector,” Kim stated.
A key highlight of the meeting was the discussion on LG Chem’s role in the global EV supply chain. Kim elaborated on the company’s collaboration with LG Energy Solution and Hyundai to build an EV battery cell factory in Karawang, West Java. The factory is being built in two phases: the first, with a capacity of 10 gigawatt-hours (GWh), was completed in 2024, and the second, with a capacity of 20 GWh, is currently under construction.
LG Chem also praised Indonesia’s government for its proactive efforts in supporting a grand package plan to accelerate investment in the clean energy sector.
Beyond the EV ecosystem, LG Chem proposed collaboration with Indonesia in the field of biodegradable plastics, offering its advanced technology for the development of sustainable solutions. Hartarto welcomed this proposal, reaffirming the Indonesian government’s commitment to attracting investments in various clean energy projects, including those in biodegradable materials.
A significant initiative discussed was Indonesia’s plan to process palm oil into sustainable aviation fuel (SAF), an area where the country holds strong potential. LG Chem, which recently developed SAF production in South Korea, expressed interest in partnering with Indonesia on SAF development.
This growing collaboration underscores the shared commitment of Indonesia and South Korea to drive forward clean energy innovation and reduce environmental impact through strategic partnerships in key sectors.
