JAKARTA (TheInsiderStories) — After the Apple assembler Pegatron Corp.’ steps to invest in Batam, Riau Islands province, Indonesia also invited United States’ Apple Inc., China’ Huawei Tecnologies Co. Ltd., and South Korea’ Samsung Electronic to create its hardware in the country, said senior official on Monday (01/14).
Indonesia is known as the world’s second biggest tin producer. While tin is one of the most important components in assembling cellular phone.
Coordinating Minister for Maritime, Luhut Binsar Pandjaitan assured that Indonesia will prepare incentives if those companies will establish their factories here. But there is no further detail yet about the incentive that will be given.
“We have approached Apple. Huawei, Samsung, everything has used (tin) material hardware. We have approached them to establish (factory) here. Of course we will give incentive for them,” said Pandjaitan.
Moreover, it is also in accordance with Indonesia’s plan in developing lithium battery industry. Last week, Pandjaitan inaugurated nickel-based lithium battery main component factory in Morowali, Central Sulawesi.
There will the first lithium battery component factory in Indonesia. PT QMB New Energy Material, a join-venture of China, Japan, and Indonesian companies will be making the factory.
The factory is developed above 120 hectares land. Its investment value is estimated to be around US$700million with $800 million production value. Not only supporting cellphone hardware, Pandjaitan said, the factory can also accelerate electricity vehicles. It targets to support 2,200 electricity cars, 711,000 hybrid cars, and 2.1 millionel ectricity motorbikes in 2025.
Indonesia Morowali Industrial Park has collected US$5 billion investment last year. The area owns 2 million tons capacity nickel pig iron production and 3.5 million tons stainless steel. Export value of these production reached $3.5 billion in 2018.
By the new lithium battery factory, Indonesia is expected to slash more import for the sake of decreasing current account deficit. Pandjaitan considered the action important to make Indonesia more independent.
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