Inp.polri.go.id - Jakarta. The withdrawal of LG Energy Solution from Indonesia’s electric vehicle (EV) investment project should not be a cause for concern, said Minister of Industry Agus Gumiwang Kartasasmita on Sunday (27/4/2025).

"In a large-scale business consortium, investor changes are common and will not disrupt the EV development targets in Indonesia," he said in an official release, adding that a Chinese investor has already stepped in to replace LG.

Indonesia’s EV ecosystem continues to grow. Two local companies are already producing batteries for electric motorcycles, while Hyundai and LG’s joint venture, PT HLI Green Power, is manufacturing battery cells for electric cars with a $1.1 billion investment.

Despite LG’s exit, Minister Agus emphasized that by 2030, Indonesia aims to produce nine million electric two- and three-wheelers and 600,000 electric cars and buses.

“Total investments have reached Rp5.63 trillion, bringing a multiplier effect to our economy,” he said, as quoted by antaranews.com.

Minister Agus raised his confidence that with strategic policies and domestic production incentives in place, Indonesia’s green vehicle sector is charged for acceleration—regardless of who’s in the driver’s seat.

(mg/inp/pr/nm)