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00:00Now to talk more about this clean energy push, electric batteries and more, today joining
00:06me is the Indonesia Battery Corporation Director of Institutional Relations, Renaldi Istanto.
00:12Thank you so much for dropping by Tuara Studios.
00:14Our pleasure.
00:15Alright, this is a very exciting topic, of course clean sustainable energy is being pushed
00:21greatly by the Indonesian government and also by corporations as well, but first of all
00:26we want to know more about the Indonesia Battery Corporation.
00:30When was it established, what is it exactly and what is its goal?
00:34Okay, so actually the idea of establishing Indonesia Battery Corporation start from 2021
00:43where we see that Indonesia has a huge potential in downstreaming EV battery ecosystem.
00:49If we see that Indonesia has a strong economic power, we are part of G20 countries and also
00:56in terms of natural resources, almost all mineral resources that Indonesia has already
01:02can be 80% of EV battery materials.
01:06So that's why Indonesia Battery Corporation established to downstream the industry of
01:12EV battery and also to create the market of EV in Indonesia.
01:17If we talk about the natural resources in Indonesia, the global demand for EV battery
01:23now is around 800 gigawatt, but only from state-owned enterprises ecosystem, we already
01:29have around 400 gigawatt nickel materials.
01:34So that's why a huge potential for Indonesia to downstream the industry and we also need
01:39to create the new economic growth here.
01:42That's why a new industry needs to be established and IBC hopefully can be a new energy materials
01:49ecosystem with a huge potential to be a new economic growth.
01:54And IBC also has four shareholders, namely Antam, Inalum, Pertaminan Power and also PLN.
02:03Those four shareholders together established the IBC to create the ecosystem ranging from
02:10the upstream to the downstream.
02:12From the upstream, we start with the nickel refineries, we also create the battery materials,
02:18battery cell and also we create the ecosystem for the battery cell, battery pack and also
02:24charging infrastructure for battery swap system.
02:28So the aim is of course to make a new energy materials, like you said, so forth charging
02:32for EV batteries as well specifically.
02:36And also there are reports, if I may ask, that IBC is working together with foreign
02:41companies to produce those batteries.
02:43Can you speak more about that?
02:45The idea of establishing IBC is also to make an investment holding in the new energy materials
02:53ecosystem.
02:54So all four shareholders are top players in their own industry.
02:59Antam has huge natural resources and also Pertamina and PLN has a strong market penetration
03:08in Indonesia.
03:09That's why the electricity comes from PLN and also with the distribution channel of
03:13Pertamina, we can optimize the opportunities of IBC.
03:19And also we also collaborate with the global partners to establish end-to-end battery ecosystem
03:25here.
03:27We already have two partnerships with CITL and LG to establish the EV ecosystem in Indonesia
03:34ranging from smelter to battery cell and battery pack.
03:37Also battery recycling, that's an interesting point.
03:41Because battery recycle is needed in the future.
03:44If we are talking about the circular economy, we need to have a battery recycle here.
03:49We are preparing the industry to be more sustainable, be cleaner.
03:55That's why battery recycle is crucial.
03:57Because if I'm not wrong, the EV batteries last about 10 years, right?
04:01So it's important to recycle them and then use them again to make new batteries.
04:07If I may ask, what is sort of the end goal here?
04:09Is it just to create an ecosystem where you make EV batteries or is there much more than
04:15that?
04:16Maybe Indonesia can be a manufacturing powerhouse in EVs as well?
04:19The ambition is to become a regional EV and ESS energy storage system battery hub.
04:25So we want to be a champion in the regional as a battery ecosystem player.
04:31As I mentioned before, we have strong natural resources reserve.
04:35That's why it needs to be utilized into battery production.
04:40And that's why the government is very serious to establish this industry.
04:45Some incentives already applied in Indonesia.
04:48And as we see that the growth of EV now is robust.
04:54We can see from the motorcycle, now it's already around 35,000 motorcycle EV.
05:00And also for the EV car, the growth is around 12,000 now.
05:06And we also have a competition with our neighbor, with Thailand.
05:12If we see the Thailand EV penetration now is around 18%.
05:18And Indonesia just 1%.
05:20So that's why this ecosystem needs to be pushed into a new economic growth of Indonesia.
05:27And of course, we have that potential.
05:29We have the resources as you mentioned several times.
05:33Now I want to talk about the story that I mentioned before our interview started.
05:38The new energy ecosystem.
05:40Talk to us more about how, what is this ecosystem?
05:43How will it work?
05:45And how does the recent MOU with seven state-owned companies accelerate the ecosystem?
05:51The reason MOU with the state-owned enterprises aim to establish new energy ecosystem,
05:56which means that we create beyond EV and battery ecosystem.
06:00We also utilize the establishment of our shareholders with the product of solar panel.
06:07So new and renewable battery ecosystem and also new and renewable energy.
06:13So that's why we start pilot with seven companies ranging from the battery energy storage,
06:20battery for electric vehicle, battery swap system.
06:25And all of the implementation use clean energy.
06:31That's why we call it new energy ecosystem.
06:34Because we open, create and market.
06:36And also we utilize the new energy resources as the main resources for the electricity.
06:44So if I'm getting this correctly, specifically at the start,
06:48these seven state-owned companies will use maybe electric vehicles for their operations and then...
06:53Yeah, not only use electric vehicle, but we also explore to establish local assembly.
06:59That's why we collaborate with the defense industry, with land.
07:03We aim to establish the local manufacturer with the global brand here.
07:08And we also open the collaboration with land to explore the potential of our battery cell to implement to their vehicle.
07:19So that's why the creating market is crucial.
07:23And also we explore with the KAI, Indonesia Railway Industry,
07:28and also INKA, Indonesia Railway Manufacturer, to support their genset,
07:33safe change to the battery energy storage as a backup.
07:37So it makes more cleaner energy.
07:40Right. That's very important.
07:43Especially nowadays, the whole world is moving towards clean energy.
07:46So, I mean, we've already been talking about the initiatives that we've seen so far,
07:51but what can we expect more in the future from IBC?
07:55Okay. So, as I mentioned, IBC's mandate is to be a global company in battery ecosystem.
08:03Our ambition, in 2034, we aim to establish 50 gigawatt of battery cell manufacturing,
08:11300,000 kiloton processed nickel, more than 100,000 of battery swap system.
08:18So that's why in the near future, we will start with the battery swap system first.
08:25Battery swap system is crucial because if we see the electric vehicle price,
08:3040% of the electric vehicle price is battery.
08:33So if we decouple the battery from the electric vehicle, it can reduce the cost.
08:38And also it makes a more sustainable ecosystem
08:43because the customer doesn't need to buy the battery.
08:47The battery is owned by IBC, and if the battery has already reached their limit,
08:55we can recycle it directly.
08:57So the circular economic concept will be implemented there.
09:01Okay, great. So this is a very exciting time.
09:05Of course, Indonesia has a great potential for the EV and sustainable energy push.
09:11Renaldo Istanto, Indonesia Battery Corporation, Director of Institutional Relations.
09:15Thank you so much for coming to our studios and sharing to us Indonesia's big push towards EVs.
09:21Thank you.
09:22Thank you.
09:23All right, we're going to go for a short break, but when we return,
09:25we will have our daily recap from the first session of Trading on the Indonesian Stock Market.
09:30Stay tuned on C2Day Business.
09:45C2Day Business