The Indonesia Investment Authority (INA), the country’s sovereign wealth fund, will set up a green electric vehicle fund of at least $2 billion with Contemporary Amperex Technology Co., Limited (CATL) and China Merchants Bank (CMB) International, the fund’s CEO said.
According to Reuters, the announcement was made in a live-streamed business conference on the sidelines of the G20 summit.
INA partnership with CATL & CMB International
INA CEO Ridha Wirakusumah signed an agreement to partner with CATL and CMB International company executives.
“The fund will invest in the EV value chain to capture a market that is expected to grow fast globally, driven by countries’ pledges to reduce greenhouse gas emissions,” said Wirakusumah.
“With CATL and CMB International as the main partners, we are looking for limited partners to invest in the green EV fund, to seize this EV value chain opportunity primarily in Indonesia,”
Indonesia on track for EV growth
Wirakusumah said that Indonesia’s EV market is on a growth path, with 400,000 electric cars and 2.1 million electric motorcycles expected to be sold in 2025.
The country is clear on developing its EV and battery industries at home after prohibiting nickel ore exports from ensuring supply for investors from 2020.
CATL $6 billion power battery project
Earlier this 2022, CATL announced a $6 billion power battery project in Indonesia in alliance with Indonesian companies.
