Indonesia Charges Towards Global EV Battery Prowess, Says Minister Bahlil

Jakarta, Indonesia – Indonesia is poised to become a pioneer in the integrated upstream-to-downstream electric vehicle (EV) battery ecosystem, according to Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia.

Speaking in Jakarta on Tuesday, August 5, 2025, Minister Bahlil as quoting the ministry’s website expressed strong optimism that the nation’s abundant raw materials and strategic initiatives will solidify its role as a leading global player in green energy. This ambitious drive is a core component of Indonesia’s push towards Net Zero Emission by 2060 and supports presidential directives for accelerated EV industrial development.

A key development underpinning this optimism is the significant investment by Huayou in collaboration with Antam and IBC, totaling approximately USD 8 billion.

Minister Bahlil anticipates that this large-scale project will be completed by the end of 2027, firmly establishing Indonesia as one of the first countries with a fully integrated EV car battery ecosystem. This integration spans from raw material extraction to final battery production, leveraging Indonesia’s rich nickel reserves.

Further bolstering the domestic market, the government is simultaneously targeting the construction of 100 GW of Solar Power Plants (PLTS), which will create a massive demand for domestically produced batteries.

Minister Bahlil also emphasized a crucial policy: all batteries for electricity consumption within Indonesia must utilize Indonesian products. This mandate is expected to significantly boost the local battery industry, ensuring energy availability for various sectors, including electric tracks and motorcycles, and contributing to energy transition and sovereignty.

“There is no reason, in my opinion, not to make efficient investments in Indonesia,” Bahlil said. He underscored the country’s unique advantages, noting, “The market is there, the raw materials are there, the ecosystem is already in place, the new and renewable energy is already there”.

This strategic push for downstream industrialization is a flagship program of the Indonesian government, directly aligning with President Prabowo Subianto’s directives and the broader “Golden Indonesia 2045” vision.

Downstreaming is projected to be a powerful catalyst for economic growth, targeting an impressive 8 percent by 2029. This initiative is also expected to significantly contribute to job creation, promote economic equity across regions, and substantially increase state revenue.