Hon Hai Invests in New Energy Ecosystem in Indonesia

Smart manufacturing leader Hon Hai Technology Group (Foxconn) has signed a Memorandum of Understanding (MoU) with the Indonesian Ministry of Investment/BKPM, IBC, Indika Energy, and Gogoro to jointly develop a sustainable new energy ecosystem in Indonesia. The joint cooperation will focus on electric battery, electric mobility, and associated industries.

“Hon Hai is excited to embark on the journey to transform the new energy ecosystem in Indonesia in cooperation with the local government, Gogoro, IBC and Indika. I believe the implementation of MIH platform, alongside our Build-Operate-Localize (BOL) strategy and manufacturing expertise will allow us to meet the market demand and create a sustainable new EV ecosystem in Indonesia” said Young Liu, Chairman of Hon Hai Technology Group.

Virtual MoU signing

EV Development and Manufacturing

Under the MoU, Hon Hai together with Gogoro, IBC and Indika, will explore a wide scope of investment and enter a mutually beneficial cooperation in setting up the new energy ecosystem in Indonesia. This ranges from electric battery manufacturing that includes battery cell, battery module and battery pack, to the development of 4-wheel and 2-wheel EV ecosystem. The cooperation will also include the development of EV supporting industries, such as energy storage systems (ESS), battery exchange stations and battery recycling.

In the initial phase, the development of New Energy and Full Battery Platform Production in Indonesia—producing LFP or nickel (solid state) premium quality EV batteries—will be the priority.

“I am pleased with the investment plan of Hon Hai and Gogoro to Indonesia together with local partners. Their involvement does not only bring in capital, but also share with us their technology and experience, creating a modern and open new EV ecosystem. It will also provide huge opportunities for local talents and local startups to develop and participate in the national EV ecosystem in Indonesia and path the way for a smarter and more sustainable future,” said Bahlil Lahadalia, Minister of Investment.

Leveraging its open “MIH platform”, Hon Hai will enable cooperation and knowledge sharing between local Indonesian companies and global business players, creating sustainable new energy ecosystem in Indonesia. This is another government level cooperation of Hon Hai following the establishment of BOL growth strategy with PTT of Thailand last year.

The virtual MoU signing ceremony was attended by Young Liu, Chairman of Hon Hai Technology Group (Foxconn); Horace Luke, CEO of Gogoro Taiwan Limited; Toto Nugroho, President Director of PT. Industri Baterai Indonesia (IBC); and Azis Armand, Vice President of PT. Indika Energy Tbk., (Indika). It was presided over by Bahlil Lahadalia, Minister of Investment/ Chairman of BKPM, and witnessed by Erick Thohir, Minister of State-Owned Enterprises (BUMN).