Indonesia Battery Corporation to Acquire German Automotive Manufacturer

[Indos]

Indonesia Battery Corporation to Acquire German Automotive Manufacturer
ECONOMICS
Shifa Nurhaliza
Tuesday, 12 October 2021 12:27 WIB

Indonesia Battery Corporation (IBC) is currently in the process of acquiring a German automotive manufacturer.

IDXChannel - PT Aneka Tambang Tbk. or Antam, Mining and Industry Indonesia (MIND ID), PT Pertamina (Persero), PT PLN (Persero) through the Indonesia Battery Corporation ( IBC ) are currently in the process of acquiring German automotive manufacturers .

Citing IDX Channel's Power Breakfast program, Tuesday (12/10/2021), the goal is to build the domestic electric vehicle industry.

READ ALSO:
Appointed as IBC Komut, This is Agus Tjahajana's Career Journey

"This acquisition process is in the finalization stage, the chip will become the majority shareholder in a company in Germany, whose market share is already large in Europe and will enter the American market," said Director of Institutional Relations MIND ID Dany Ichdan, some time ago.

This acquisition process will later use the company's intellectual property rights and adopt them to develop the domestic electric vehicle industry. The process of adopting this technology is estimated to take 1 to 2 years.

READ ALSO:
Highlighting IBC Shares Holds by Four SOEs, Dahlan Iskan: It will be difficult to make decisions
In his presentation, Dany did not say clearly what company would be acquired. However, if you look at the German automotive landscape, it consists of three major automotive company groups, namely the BMW Group, Daimler AG (owner of Mercedes), and the Volkswagen Group. (TIA)

Indonesia Battery Corporation Akan Akuisisi Produsen Otomotif Jerman

Indonesia Battery Corporation (IBC) saat ini diketahui tengah dalam proses akuisisi produsen otomotif Jerman.

www.idxchannel.com

@Viet

 

[nufix]

Indonesia Battery Corporation to Acquire German Automotive Manufacturer
ECONOMICS
Shifa Nurhaliza
Tuesday, 12 October 2021 12:27 WIB

Indonesia Battery Corporation (IBC) is currently in the process of acquiring a German automotive manufacturer.

"This acquisition process is in the finalization stage, the chip will become the majority shareholder in a company in Germany, whose market share is already large in Europe and will enter the American market," said Director of Institutional Relations MIND ID Dany Ichdan, some time ago.

Premise 1: Already have a (large) market share in Europe
Premise 2: Will enter the American market

For premise 1, this could be anything

For premise 2... this is quite hard to decipher since German brand that already has a large market share in Europe has already established footholds in the American market.

 

[Indos]

Premise 1: Already have a (large) market share in Europe
Premise 2: Will enter the American market

For premise 1, this could be anything

For premise 2... this is quite hard to decipher since German brand that already has a large market share in Europe has already established footholds in the American market.

I believe it will be second rate German automaker, as you have lived in German, can you posted here some German brands that is not coming from big German automaker ?

I think it is an ambitious step, previously they only want to target supplying motorcycles battery and there is already a state owned company which make electric motorcycle (Gesits) and of course Honda and Yamaha factories in Indonesia.

If they make a car factory in Indonesia, they need to cooperate with Astra for spare parts supply. I believe they will follow Toyota paths where large majority of their parts are supplied by Astra. There should be TOT from Astra or maybe another German part company who are currently making parts for the company so they can add more components manufacturing using their own autoparts companies (IBC subsidiary companies).

It will be great if we have another part manufacturing companies as large as Astra Autopart beside of course having profitable car manufacturer using German brand.

 

[nufix]

I believe it will be second rate German automaker, as you have lived in German, can you posted here some German brands that is not coming from big German automaker ?

I think it is an ambitious step, previously they only want to target supplying motorcycles battery and there is already a state owned company which make electric motorcycle (Gesits) and of course Honda and Yamaha factories in Indonesia.

If they make a car factory in Indonesia, they need to cooperate with Astra for spare parts supply. I believe they will follow Toyota paths where large majority of their parts are supplied by Astra. There should be TOT from Astra or maybe another German part company who are currently making parts for the company so they can add more components manufacturing using their own autoparts companies (IBC subsidiary companies).

It will be great if we have another part manufacturing companies as large as Astra Autopart beside of course having profitable car manufacturer using German brand.

Second rate ones usually supply half-finished products to the big ones or do the final fittings. So they dont really have market share via their own brands and models. And like I said, those who do have market share, have established foothold in the American market via their own brand and models or via one of their subsidiaries and sister companies from the same groups.

This leaves one possible candidate, Opel. Opel has a substantial domestic market share and is poised to re-enter the American market in 2022 after being absent for more than 40 years. But then again, Opel was just recently sold to PSA group by its former owner GM. Not sure if PSA is opening shared ownership of Opel brand with external companies, not to mention that PSA group is french.

 

[Yongpeng Sun-Tastaufen]

I suppose the Indonesian government can spend 10 billion USD to buy Opel but thus far I don't think Stellantis is selling it.

 

[Indos]

I suppose the Indonesian government can spend 10 billion USD to buy Opel but thus far I don't think Stellantis is selling it.

Not government but state owned companies, those heavy weigh SOE like Pertamina, PLN, and MIND ID (who own majority stake of PT Freeport Indonesia), and also ANTAM. Those companies create JV company, IBC, which focus on EV battery supply chain industries.

PT Pertamina alone is planning to buy around 48 tankers for the next 5 years and I think they can turn this plan into buying majority stake in Opel as electric cars business is the future while oil and gas industries, including with the oil tankers are sunset industry. Gas I think will be around though for quite long time.

We can then start building Opel car factory in Indonesia which will focus on electric where the battery will be supplied by IBC

PT Pertamina which is an oil and gas companies that later become an energy companies has shipping subholding which focus on oil and gas transport and currently has 700 ships ( oil tanker and LNG ship). I believe the investment capital for this subholding companies should be diverted into electric car manufacturing which also should include the car part manufacturing and its marketing supports.


Their latest ship delivery from Japan

 

[Viet]

Indonesia Battery Corporation to Acquire German Automotive Manufacturer
ECONOMICS
Shifa Nurhaliza
Tuesday, 12 October 2021 12:27 WIB

Indonesia Battery Corporation (IBC) is currently in the process of acquiring a German automotive manufacturer.

View attachment 784136

IDXChannel - PT Aneka Tambang Tbk. or Antam, Mining and Industry Indonesia (MIND ID), PT Pertamina (Persero), PT PLN (Persero) through the Indonesia Battery Corporation ( IBC ) are currently in the process of acquiring German automotive manufacturers .

Citing IDX Channel's Power Breakfast program, Tuesday (12/10/2021), the goal is to build the domestic electric vehicle industry.

READ ALSO:
Appointed as IBC Komut, This is Agus Tjahajana's Career Journey

"This acquisition process is in the finalization stage, the chip will become the majority shareholder in a company in Germany, whose market share is already large in Europe and will enter the American market," said Director of Institutional Relations MIND ID Dany Ichdan, some time ago.

This acquisition process will later use the company's intellectual property rights and adopt them to develop the domestic electric vehicle industry. The process of adopting this technology is estimated to take 1 to 2 years.

READ ALSO:
Highlighting IBC Shares Holds by Four SOEs, Dahlan Iskan: It will be difficult to make decisions
In his presentation, Dany did not say clearly what company would be acquired. However, if you look at the German automotive landscape, it consists of three major automotive company groups, namely the BMW Group, Daimler AG (owner of Mercedes), and the Volkswagen Group. (TIA)

Indonesia Battery Corporation Akan Akuisisi Produsen Otomotif Jerman

Indonesia Battery Corporation (IBC) saat ini diketahui tengah dalam proses akuisisi produsen otomotif Jerman.

www.idxchannel.com

@Viet

The name is not mentioned. What company should be?

 

[Indos]

The name is not mentioned. What company should be?

According to @nufix is Opel since the information is fit with that.

EV car target market is rich people for Indonesian market since the price is higher than normal car, so understandable for them to buy Opel, German bran, rather than fueling money to Pindad which is also another state owned company.

Pindad car

 

[Indos]

Second rate ones usually supply half-finished products to the big ones or do the final fittings. So they dont really have market share via their own brands and models. And like I said, those who do have market share, have established foothold in the American market via their own brand and models or via one of their subsidiaries and sister companies from the same groups.

This leaves one possible candidate, Opel. Opel has a substantial domestic market share and is poised to re-enter the American market in 2022 after being absent for more than 40 years. But then again, Opel was just recently sold to PSA group by its former owner GM. Not sure if PSA is opening shared ownership of Opel brand with external companies, not to mention that PSA group is french.

This is the company, dont know the value, but do you think it is worth it ? There may be some good engineers working in their R&D development and some valuable IP rights. They are more into truck by the way.

 

[nufix]

This is the company, dont know the value, but do you think it is worth it ? There may be some good engineers working in their R&D development and some valuable IP rights. They are more into truck by the way.

I dont think that‘s the one because the indonesian company that wants to buy StreetScooter is PT Toba Bara, a private company which is not part of the new Indonesia Battery Corporation consisting of SOEs. Furthermore, StreetScooter doesn’t have any footprint in the US market nor does it have any plan to expand to the US.

As for whether it is worth it or not, well that depends on the purpose of buying the company. They only have 1 product line consisting of small to medium sized trucks only suitable for urban areas. The product didnt sell well in Germany and the only big customer that it had (Deutsche Post) is now planning to sell the remaining trucks they have due to poor quality and performance. So if the purpose behind the purchase is to acquire its knowledge and production facilities, then it should be worth it. But if the purpose is to try to sell the current product lineup to Indonesia/Asian market, I doubt that’s going to end up well.