Jakarta – The Indonesian National Construction Executives Association (Gapensi) urges local entrepreneurs not to be mere spectators in their own country’s electric vehicle (EV) battery industry, which is predicted to be a milestone in the national energy transformation. According to Gapensi in a written statement, on Tuesday, July 1, local entrepreneurs must be involved in strategic projects, such as the development of the EV battery industry ecosystem.
“Don’t let this project just be a breeze of heaven for local entrepreneurs. There must be real action, not just a ceremonial speech,” said Gapensi Secretary General La Ode Safiul Akbar. This statement was in response to the groundbreaking of the Integrated Electric Vehicle Battery Industry Ecosystem Project by President Prabowo Subianto and Minister of Energy and Mineral Resources Bahlil Lahadalia in Karawang, West Java, on Sunday, 29 June.
On that occasion, Minister Bahlil called for local entrepreneurs to be given the main portion and for downstream industries to benefit not only investors and the central government, but also to be fair to regions and communities.
“Gapensi fully supports that statement. However, we remind you that the involvement of local entrepreneurs must be concrete. It is not only state-owned enterprises that are given space, but also local private companies, especially contractors in the project area,” La Ode said.
Giant project, local involvement challenge
The EV project, promoted by a consortium between PT Aneka Tambang Tbk (Antam) and Ningbo Contemporary Brunp Legend Co Ltd (CBL), a Chinese company, has an investment value of USD 5.9 billion. The project is divided into six sub-projects, five in the Feni Haltim area (East Halmahera, North Maluku) and one in Karawang, covering a total area of 3,023 hectares and projected to absorb 35,000 workers.
However, according to La Ode, so far, large projects have often involved only foreign companies or state-owned enterprises. “If the investors are from China, the ones who work are also from China. Local entrepreneurs are just spectators. This is not healthy for the national economy,” he said.
Gapensi affirms its readiness to be directly involved in various stages of development and calls on the government to issue affirmative policies that ensure the involvement of local contractors is a mandatory requirement in strategic projects, especially if foreign parties make investments.
As an organisation with thousands of members across Indonesia, Gapensi said it is ready to oversee that future strategic energy and infrastructure projects can truly bring inclusive benefits. “We want Indonesia to not only be a place for resource extraction, but also a place for the growth of national economic power based on local businesses,” La Ode concluded. (Hartatik)
Banner photo: nsh/2023
