Indonesia is deepening its clean energy and electric vehicle (EV) partnership with South Korea as part of efforts to cut greenhouse gas emissions by 31.89 percent by 2030, reports Antara News.
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, in Jakarta on Friday to accelerate cooperation.
"The LG Group’s support for Indonesia’s EV ecosystem and clean energy sector is highly valued, and we look forward to strengthening this partnership," Hartarto said in a statement.
Despite global challenges, including declining demand for EVs, both officials highlighted Indonesia’s strong potential for industry growth.
Kim acknowledged the Indonesian government’s long-standing support for LG Group, which has operated in the country’s manufacturing sector for years. He reaffirmed Indonesia’s importance as a strategic partner, particularly in the green industry.
LG Chem plays a key role in the global EV supply chain and, alongside LG Energy Solution and Hyundai, is building an EV battery cell factory in Karawang, West Java. The first phase, with a capacity of 10 gigawatt-hours (GWh), was completed in 2024, while the second, with a 20 GWh capacity, is underway.
The company also praised the Indonesian government’s backing of a grand package plan to accelerate investment in the sector.
Beyond EVs, LG Chem proposed working with Indonesia on biodegradable plastics by sharing its technology. Hartarto welcomed the proposal, reaffirming the government’s commitment to attracting investment in clean energy projects.
One major initiative is processing palm oil into sustainable aviation fuel (SAF), an area where Indonesia has strong potential. LG Chem, which recently developed SAF production in South Korea, expressed interest in collaborating on similar efforts in Indonesia.
Bd-pratidin English/ Jisan
