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IBC Accelerates Business Growth with Acquisition of Gesits

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IBC Accelerates Business Growth with Acquisition of Gesits​


By Editorial Team 19/12/2022
Topic

Indonesia Battery Corporation (IBC) officially took over 53.93 percent stakes in Gesits electric motorcycle manufacturer PT Wika Industri Manufaktur (WIMA) from PT Wijaya Karya Industri and Konstruksi (WIKON), a subsidiary of PT Wijaya Karya Tbk (WIKA). After the transaction, WIMA's shareholder consists of IBC at 53.93 percent, WIKON at 46.04 percent, and WIKA Employee Cooperative at 0.03 percent.

The Sales and Purchase Agreement (SPA) signing for WIMA shares took place on Tuesday. IBC President Director Toto Nugroho said that acquiring WIMA shares is IBC's step to accelerate the electric vehicle ecosystem in Indonesia, which is integrated with the electric battery industry. "The collaboration between WIKON and IBC is carried out by encouraging Gesits as a two-wheeled electric motor vehicle platform integrated with the end-to-end value chain EV [electric vehicles] battery and EV Ecosystem from upstream to downstream. Including utilizing the network owned by the SOEs group that houses IBC for electric vehicle charging infrastructure development," Toto said on Friday.

 

Introducing - IBC for Indonesia​

 
IBC LINE OF BUSINESS

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EV Battery for Future​



Battery Cell Production​



Precursor and Cathode Production​



Nickel Mining​

 

Gesits Explores Australia And The Philippines To Expand Export Market​


2nd May 2022

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JAKARTA - Gesits is exploring the automotive market in Australia and the Philippines in order to expand sales of their electric motorcycle products overseas.

"We are trying to enter countries such as Australia and the Philippines. We have also sent samples (of products) there. Pray for the future to be able to enter the market in these countries," said Finance Director of PT WIKA Industri Manufaktur (WIMA) Irsal Shaleh Matondang in a written statement quoted by Antara, Monday, May 5.


To date, Gesits has exported 38 units of electric motorcycles to Senegal. In addition, WIMA as the producer of the Gesits electric motorcycle has also received requests for 200 units from Senegal and 250 units from Nigeria.

Along with the increasing demand from abroad, Gesits also continues to develop its electric motor qualifications. Currently, Gesits is preparing several new product variants to attract public interest.

In addition, Gesits also offers a number of advantages to consumers, such as batteries that use Battery Management System (BMS) technology, which makes the battery relatively safe when charged at any time without worrying about being overcharged or short-circuited.

Gesits also presents Gesits Apps, an application that functions to analyze vehicle health such as battery status. This application can also be connected to the owner's device using bluetooth.

Irsal said Gesits also continues to collaborate with stakeholders to create a good electric vehicle ecosystem.

The existence of a good ecosystem, such as the availability of a General Electric Vehicle Battery Exchange Station (SPBKLU) can increase public interest in using environmentally friendly vehicles.

Moreover, WIMA has also prepared after-sales services such as sales of accessories to workshops to provide maximum service to consumers.

"This is certainly an environmentally friendly mobility solution for the community with the best products and services," said Irsal.

Irsal added, currently the public's interest in electric two-wheeled vehicles is good, as can be seen from the trend of switching from conventional vehicles to electric vehicles.


However, he does not deny that there are still people who are hesitant to bring electric vehicles, one of which is related to the uneven supporting infrastructure.

"That's why we at WIMA also continue to develop and contribute to building an electric vehicle ecosystem. When the ecosystem is ready and in several areas, I think people are interested in switching to using two-wheeled electric vehicles," he concluded.

 
Indonesia motorcycle industry is supported by huge spare part producers. Here I bring one of them.

 
Fully charged: Indonesia races to be the EV battery champion

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Electric vehicles are one of the driving forces for a sustainable future for all. And nickel, of which Indonesia is one of the world’s top producers, is one of the key elements powering EVs.

Under President Joko Widodo, Indonesia has moved to create a full-spectrum EV ecosystem, starting with nickel mining and going up the value chain to battery manufacturing and recycling. For investors, this presents an opportunity not just to get in on the hottest sector around, but also to make a meaningful change for good.

Today, a consortium of South Korean investors — LG Energy Solution, LG Chem, LG International, POSCO — and China’s Huayou Holding are collaborating with the state-owned Indonesia Battery Corporation (IBC) on an IDR142 trillion (9 billion USD) EV battery factory. At the March 17 grand launch of this sustainable investment project, Minister of Investment/Chairman of BKPM Bahlil Lahadalia said the factory is expected to go into operation in late 2023. In 2024, it is expected to produce 10 gigawatt-hours (GWh) of battery capacity — enough for 3-4 million electric motorbikes and almost 100,000 electric cars.

As for the latter, President Jokowi on March 16 inaugurated the PT Hyundai Motor Manufacturing Indonesia factory in Cikarang, Bekasi Regency, West Java. The event also saw the launch of the IONIC 5 electric car, produced at the factory. “The electric car factory has been inaugurated, built by Hyundai, and this is the first in Southeast Asia,” Bahlil said.

Other plants in the EV value chain are also in the works, including a cathode precursor plant and a battery cell and battery pack factory, both in the Batang Industrial Estate, Central Java. A nickel smelter is also being built in North Maluku.

Indonesia’s aspiration to become a major player in EV batteries globally is making great strides with each new investment, and strengthens the country’s position as Southeast Asia’s EV battery production hub.
 

PLN Opens 7 Charging Stations in West Nusa Tenggara to Develop Electric Vehicle Ecosystem​

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22 January 2023 15:38 WIB​



TEMPO.CO, Jakarta - State-run electricity provider PT PLN (Persero) built and operationalized seven electric vehicle (EV) charging stations (SPKLUs) in West Nusa Tenggara (NTB) province in 2022 to expedite the development of the EV ecosystem.

The SPKLUs were set up at several strategic locations, which are easily accessible to the public, to allow EV owners to use the facilities, general manager of NTB PLN, Sudjarwo, said here on Saturday.

"It is hoped that (the establishment of) more SPKLU points will be able to increase public interest in switching to (using) electric vehicles," he added.

He informed that the seven SPKLUs are located at the NTB Governor's Office, NTB Provincial Transportation Office, NTB PLN’s Regional Main Unit, Customer Service Unit (ULP) of PLN Selong, Mataram 3 Vocational High School, MVP Grand Natura, and Hotel Santika Mataram.

Meanwhile, in 2023, PLN is planning to construct more SPKLUs at several other locations, such as the Mandalika Special Economic Zone, Zainuddin Abdul Madjid International Airport, Sumbawa PLN Customer Service Implementation Unit (UP3) Office, and Bima PLN UP3 Office.
Sudjarwo said that PLN is open to collaboration with all stakeholders, both government and private, to build more SPKLUs.

"By building these SPKLUs, hopefully, the transition process (from using conventional vehicles) to electric vehicles can run smoothly to reduce carbon emissions to achieve the NTB government’s net zero emission (NZE) target by 2050," he added.

Meanwhile, Deputy Governor of NTB, Sitti Rohmi Djalilah, stated that her administration is committed to realizing the NZE target, including by conserving the environment and reducing carbon emissions.

"Certainly, the establishment of the SPKLUs will encourage us to switch from conventional vehicles to electric vehicles more quickly," she added.

Sitti said that the provincial government will soon issue a governor's regulation (Pergub) to expedite the transition from conventional to electric vehicles.

Currently, Sitti Rohmi Djalilah is using electric cars for work.

ANTARA

 

MIND ID Realizes Downstream Development of Aluminum and Nickel Industry​

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Monday, 3 October 2022 12:50 WIB​


NATIONAL INFO - President Joko Widodo continues to encourage every raw material producing industry in Indonesia to start committing to thinking about the downstreaming of its derivative products. Product downstreaming is believed to be able to strengthen the industrial structure, provide employment, and provide business opportunities in Indonesia.

Mining Industry Indonesia (MIND ID) as a State-Owned Mining Industry Holding together with its members PT Antam Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero), PT Timah Tbk are also committed to realizing the President's message.

President Director of MIND ID, Hendi Prio Santoso said MIND ID has three mandates from the Government. First, it manages reserves and strategic resources. Two, downstream. Three, having market leadership realized through optimization of mineral commodities and business expansion.

One of MIND ID's downstream efforts is realized in the aluminum and nickel business industry, which is currently a key component in the development of the electric vehicle industry. This is in line with the statement of SOE Minister Erick Thohir, that SOEs continue to industrialize the mineral and coal industry to increase industrial value. Moreover, it is supported by the country's abundant mining resources.

"On the other hand, Indonesia is also a producer and exporter of nickel, the main raw material for EV batteries. In fact, we are the world's largest nickel producer supplying 27 percent of global market demand," erick said.

Therefore, the Ministry of SOEs always innovates business models in this industry and improves the value chain of all existing resources. "We have established Indonesia Battery Corporation (IBC), which focuses on developing an end-to-end EV Ecosystem from the exploration & processing of nickel as an electric battery component to EV production and battery recycling," said Erick.

"In addition, we want to attract strategic partners to collaborate and create more value for the industry. With foreign investment in this industry, I believe that we can improve the sustainability of the industry and become more competitive in the global market. The MOU between MIND ID and ARRIVAL is just one of the ways we try to collaborate with strategic partners to create more value."

The electric vehicle industry is currently one of the solutions to reduce increasing global emissions. Electric vehicles are one of the environmentally friendly transportation alternatives, because they do not produce emissions that produce air pollution. This commitment was simultaneously agreed to be one of the three objectives of the G20 Presidency priority agenda in Indonesia, namely (i) the World Health System; (ii) Digital Economy Transformation; (iii) Energy Transition.

"Accelerating the presence of the Electric Vehicle industry in Indonesia is in line with MIND ID's sustainability pathway and also in line with the Sustainable Development Goals (SDGs), especially on the pillars of handling climate change," President Director of MIND ID, Hendi Prio Santoso.

The seriousness of developing this industry was demonstrated by MIND ID by visiting the UK last May and signing a Memorandum of Understanding with Arrival Ltd as a partner to find potential supply solutions, as well as discussing the design and development of electric vehicles. This initiation is part of MIND ID's efforts in exploring the development of commercial electric vehicle microfactories in Indonesia and Southeast Asia.

In order to implement the spirit of strategic cooperation stated in the Memorandum of Understanding, MIND ID appointed PT Industri Baterai Indonesia ("IBC") to implement it, while conducting a feasibility study together with Arrival Ltd. including Market Study and Project feasibility for electric vehicle business expansion, feasibility of Aluminum supply project and Battery supply for EV business expansion in Asia Pacific region.

The appointment of IBC as the implementer of the Joint Development Agreement was signed on September 30, 2022 during the MIND ID visit represented by Hendi Prio Santoso with Dany Amrul Ichdan as Director of Institutional Relations of MIND ID, as well as the ranks of the Ministry of SOEs.

Based on the results of the feasibility study, MIND ID and Arrival UK Ltd plan to explore the possibility of further collaboration by jointly building Microfactories for Commercial EVs in Indonesia and the Southeast Asia region.

Arrival microfactory development and investment opportunities in Indonesia support government programs in attracting foreign investors to invest in the country.

"The cooperation between MIND ID and Arrival can contribute to the downstream development of the Aluminum and Nickel industry in Indonesia. Support and synergy are needed to accelerate the realization of the program, one of which is in the form of government policies and convenience for the electric vehicle ecosystem in Indonesia," said Hendi.


 
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Gesits is SOE initiative, both IBC and WIKA are SOE

These are Indonesian private sector initiative, other Indonesian own EV brands.


 

Fuel Consumption Reaches 70 Billion Liters per Year, Electric Vehicles Become a Solution​

Story from Nora Azizah • 15 minutes ago



REPUBLIKA.CO.ID, JAKARTA -- Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that the acceleration of the adoption of electric vehicles is expected to reduce fuel oil (BBM) consumption. Currently, the fuel consumption of conventional vehicles currently reaches almost 70 billion liters / year.

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Therefore, Luhut said the government will increase the market share of electric vehicles in the country by up to 10 percent through the provision of incentives for the purchase and conversion of electric motors. Then, also in the form of tax deductions for electric cars.

"We continue to push for electric vehicles (EVs). In 2023-2024, we will drive a 10 percent market share for EVs and electric motors. That way we can reduce emissions and fuel imports," he said at the Mandiri Investment Forum (MIF) 2023 which was monitored online in Jakarta, Wednesday (1/2/2023).

In his presentation, in 2021 it was noted that the number of conventional motorcycles reached 118 million units with sales of 6.5 million units / year and fuel consumption reached 35.9 billion liters / year. Meanwhile, the number of conventional cars reached 23 million units in 2021 with sales of around 1 million units / year and fuel consumption of 34 billion liters / year.

"Fuel consumption reaches 70 billion liters a year. You can imagine this number. Therefore, if we push 10 percent (electric vehicles), we will be able to reduce fuel consumption," he said.

To achieve 10 percent market share, sales of electric vehicles should reach about 600 thousand units for electric motors, and about 100 thousand units for electric cars. Luhut also said that the government will provide incentives for the purchase of electric motors of IDR 7 million and a tax reduction for electric cars of around 10 percent. According to him, this figure is equivalent to the incentives offered by Thailand until the market share of electric vehicles for their car sales reaches 10 percent.

"I think for the bike, it will be around Rp. 7 million. And the car may have a tax reduction of about 10 percent. I said, don't think about it so much, just make it simple. Look at what happened in Thailand, in Vietnam. Just make adjustments so that it becomes competitive. Don't look at it from personal interests but also global interests, regional interests," he said.

Luhut said the government will continue to make efforts to accelerate the adoption of electric vehicles in the next five to 10 years. He also said that this would also support the policy of utilizing palm oil which is projected to be used as fuel in 2040-2045.

"We will produce 100 thousand tons of palm oil per year in 2040-2045, of which 30 percent we use for food and 70 percent will be energy. It will also reduce or perhaps we will no longer import energy from any country. It will make Indonesia more sovereign," he said.

 
January 27, 2023

ASEAN sales fall slightly in Q4, up 21% in 2022​

The decline reflected a number of factors, including strong year earlier data when markets rebounded strongly from their pandemic lows, ongoing shortages of semiconductors, while deliveries in Thailand were negatively affected by localised flooding

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New vehicle sales in the ASEAN region’s six largest markets combined declined slightly in the fourth quarter of 2022 to an estimated 920,000 units, after growing strongly in previous quarters, according to data compiled from various industry sources including vehicle manufacturers, trade associations and government departments.

The decline reflected a number of factors, including strong year earlier data when markets rebounded strongly from their pandemic lows, ongoing shortages of semiconductors, while deliveries in Thailand were negatively affected by localised flooding in the final two months of the year. Sales in Vietnam plunged by 35% in the fourth quarter, while growth was much slower in other markets.


Economic growth across the region remained strong in the fourth quarter, however, lifted by a rebound in international travel and tourism in the second half of the year, strong demand for commodities, rising investment and domestic consumption. Most markets in the region have now returned to pre-pandemic levels, with strongest growth last year reported in Malaysia, of almost 42% to a record 720,658 units, followed by the Philippines and Vietnam. Indonesia was by far the largest market in the region after sales rose by over 18% to 1,048,040 vehicles or close to 31% of the regional total.

Indonesia


New vehicle sales increased by almost 12% to 289,824 units in the fourth quarter of 2022 from 259,665 units in the same period of last year, according to data released by local industry association Gaikindo.

The country’s vehicle market has now returned to pre-pandemic levels after rebounding strongly over the last two years, with full year sales rising by over 18% to 1,048,040 units from 887,202 units in 2021. Passenger vehicle sales rose by 18% to 777,866 units while commercial vehicle sales were up by almost 19% at 270,174 units. Just over 10,000 electric vehicles (EVs) were sold in the country last year, comprising mostly Hyundai and Wuling models.

The government has introduced policies to help drive up demand for EVs, including tax incentives and encouraging national and regional governments to switch to battery powered vehicles.

The country’s economy is estimated to have expanded by 5.5% in 2022, helped by a return of international tourism after two years of restrictions, buoyant commodity prices, rising private investment and strong consumer spending. Bank of Indonesia hiked its benchmark interest rate to 5.5% last year from 3.5% at the end of 2021 to help control surging price inflation.

Toyota’s local sales increased by over 12% to 331,410 units last year, helped by recent new model launches including the all-new popular Avanza compact MPV at the end of 2021. Daihatsu’s sales rose by almost 23% to 202,665 units, lifted by the all-new Xenia and Terios models and the Sigra small car; while Honda’s sales increased by 48% to 134,761 units, helped by the recent launch of the new HR-V and BR-V models. Mitsubishi’s sales declined by 9% to 99,051 units after the company outperformed strongly in 2021, while Suzuki’s sales were slightly lower at 90,408 units.

According to the association, vehicle production in the country increased by 31% to 1,470,146 units last year, while exports of built-up vehicles surged by 61% to 473,602 units.

 

AlhamduliLLAH​

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New Deal to Overhaul EV Battery Industry Consortium​

By Editorial Team 17/02/2023


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Summary

Indonesia Battery Corporation (IBC) requires a budget of Rp 217 trillion (14.3 billion USD) to develop local electric vehicle (EV) batteries. Toto Nugroho, IBC President Director, said it is collaborating with Contemporary Amperex Technology Ltd (CATL) and LG Energy Solutions as partners in the battery development consortium.

Some Rp 200 trillion of the fund demands can be obtained from the world's two largest electric vehicle battery manufacturers. "It is in accordance with the commitment signed through the framework agreement in March 2022," Toto said on Wednesday. However, there was a change in the consortium member companies' composition, as LG was about to withdraw because it did not want to enter the upstream or nickel processing side. "But they have come again to provide commitments regarding the consortium," he continued.

 
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MIND ID Focuses on Becoming a Strategic Holding for the Mining Industry​

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Saturday, 25 February 2023 13:00 WIB


NATIONAL INFO – MIND ID focuses on becoming a strategic holding that will orchestrate 6 (six) operating company companies, namely PT Aneka Tambang Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum, PT Timah Tbk, and PT Vale Tbk. This step is expected to create synergy and more optimal efficiency in strategizing and implementing functions in a focused and not mixed with operational activities.

"So far, legally, PT MIND ID does not exist. With the presence of PP at the end of last year, MIND has legally become a holding company and PT Inalum can refocus on becoming an operating company. MIND ID's management will focus more on strategizing and not operations," said Hendi Prio Santoso, President Director of MIND ID at an evening talk show with a number of Editors-in-Chief in February 2023 in South Jakarta.

Under the leadership of Hendi Prio Santoso, MIND ID recorded good performance and growth and had brilliant short and medium to long term plans. In line with the Government's mandate, MIND ID has a Strategic Work Program, namely increasing exploration & production growth aggressively, increasing cost competitiveness through digital, and building downstream assets on a global scale.

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MIND ID as a Mining Holding in Indonesia has a role as a collaborator and encourages strategic alliance synergies for new downstream business expansion, as well as capability development and optimization of downstream portfolios. Indonesian President Joko Widodo has emphasized the importance of downstreaming several times to increase added value.

"MIND ID fully supports the government to prove that Indonesia can be a host for a sustainable industry. From our side, we provide more ready-to-use raw materials to become industrial finished goods. We continue to work with the government to find the best way," Hendi said.

Downstreaming is a priority program with several challenges to face. However, in accordance with the Government's aspirations to form MIND ID as a Holding since 2017, Hendi ensures that several strategic projects to support downstreaming take place in accordance with the targets that have been set.


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For example, what PT Timah Tbk is doing, through the TSL (Top Submerged Lance) Ausmelt Furnace technology smelter project. Through this smelter, PT Timah is able to process or smelt tin ore concentrate with a content of 40 percent (low grade). The faster smelting process of this new smelter shows an efficiency of 25 percent-34 percent compared to the existing smelter, and some time ago it was visited by the President of the Republic of Indonesia, Joko Widodo.

Meanwhile, PT Antam Tbk also ensures that the Ferronickel Smelter located in East Halmahera will start operating in 2023. Meanwhile, PT Freeport Indonesia is also committed to continuing to pursue the progress of the world's largest Copper Smelter project located in Manyar, Gresik, in the JIIPE Area which is targeted to complete the construction process by the end of 2023 and start operating in mid-2024.

While PT Inalum focuses on working on the Port Upgrading Project and the Brownfield Project together with Emirates Global Aluminium (EGA), this is to maximize the Downstreaming of Aluminum Products so that it can double Aluminum production.

"Collaboration and synergy of various parties are needed to be able to realize the ideals of Downstreaming in Indonesia in order to add maximum value to the prosperity of the Indonesian people. Because MIND ID manages natural resources for civilization, prosperity, and a brighter future", says Hendi.

 
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Potential Collaboration with Australia that has huge lithium reserve

(Conversation is in English)

 

PLN focusing on EV charging infrastructure​

7th March 2023

PLN focusing on EV charging infrastructure

State-run electricity provider PT PLN is focusing on the construction of public electric vehicle charging stations (SPKLUs) and the provision of home-charging services. As of the end of 2022, PLN has installed 570 SPKLUs across Indonesia. (ANTARA/HO)



Jakarta (ANTARA) - State-run electricity provider PT PLN has informed that it is focusing on setting up public electric vehicle (EV) charging stations (SPKLUs) and providing home-charging services to ensure the availability of EV infrastructure for the community.

"Apart from SPKLUs, (we) are also focusing on the construction of home charging in cooperation with electric vehicle producers," PLN's Director of Project and New and Renewable Energy Management Wiluyo Kusdwiharto said here on Tuesday.

PLN is committed to accelerating the construction of supporting infrastructure for the EV ecosystem in Indonesia, in line with the government's plan to provide incentives for the purchase of EVs, he added.

PLN will increase the number of SPKLUs in strategic places, such as office buildings, malls, transport nodes, rest areas, and toll roads.

It has already compiled data on regions that have witnessed an increase in the population of EVs so that infrastructure development in the future can be focused on those regions.

Regarding the home-charging services, people mainly charge their electric vehicles at home at night so that the vehicles can be used the next day, he noted.

Therefore, PLN is cooperating with EV producers in Indonesia to provide home-charging services.

"When people buy (electric) cars, they automatically get home charging through the cooperation between electric vehicle producers or trademark agents (APM) and PLN. Thus, the system is bundling," he said.

Based on PLN data, as of the end of 2022, it has installed 570 SPKLUs across Indonesia. The charging stations offer three types of charging services, namely, medium charging, fast charging, and ultra-fast charging.

PLN is intensively constructing SPKLUs to ensure the availability of EV charging infrastructure so that the Indonesian people do not hesitate to shift to EVs, which are more environmentally friendly.

 

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