Indonesia's INA, Chinese partners form $2bn EV fund

The three parties signed a memorandum of understanding at a business-focused side event to the G-20 Summit in Bali.

The fund will invest across the EV value chain to capture growth in a market that is being transformed by commitments to reduce carbon emissions, said Ridha Wirakusumah, CEO of INA. He added that INA is keen to sign up more LPs to "seize this EV value chain opportunity, primarily in Indonesia."

Robin Zeng, chairman of CATL, observed that his company is committed to helping Indonesia develop a green battery industry covering the entire lithium supply chain, from nickel mining to battery recycling. In April, CATL announced a USD 6bn power battery project in partnership with local players.

Wirakusumah said that sales of electric motorcycles in Indonesia are expected to reach 2.1m units by 2025, while EV sales are on track to hit 400,000 units.

The country is home to 22% of global nickel ore reserves, a critical component in batteries. Exports of the commodity have been banned since 2020. Indonesia wants to leverage this resource to develop a robust domestic battery industry and EV manufacturing capabilities.

INA was established last year as part of a package of reforms intended to attract foreign investors to Indonesia. While most sovereign wealth funds are set up to manage national oil revenues or foreign exchange reserves, INA has actively courted international backers.

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• Topics
• Southeast Asia
• Technology
• Fundraising
• Indonesia
• automobiles
• China Merchants Capital
• Electric Vehicles
• Indonesia Investment Authority (INA)