The government is optimistic it can make Indonesia the primary choice for the EV battery industry.

KatadataOTO – The government is optimistic about making Indonesia a major player in the electric vehicle industry. This is because an integrated EV battery ecosystem project, from upstream to downstream, is currently being built.

Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM), also revealed that the government is building a solar power plant (PLTS) with a capacity of 100 GW. Once completed, it will become a large market for the domestic battery industry.

“Huayou will soon be operational with Antam and IBC with a total investment of around 8 billion US dollars. Everything is targeted for completion by 2027, making Indonesia one of the first countries to build an integrated car battery ecosystem from upstream to downstream," he said, as reported by Antara (06/08).

He revealed that the plan is in line with the government's program to achieve net zero emissions (NZE) by 2060. This includes carrying out President Prabowo Subianto's directive for downstreaming and accelerating the development of the electric car industry.

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Not only that, the utilization of new and renewable energy (EBT) for electricity is also a priority that will open up opportunities for the domestic battery industry.

"We demand that electric batteries, all must use Indonesian products. This is a large market, and we will push it as part of the energy transition and energy sovereignty," he then emphasized.

It was previously reported that the government is encouraging electric vehicle manufacturers to use nickel-based batteries. This is because Indonesia is one of the largest nickel-producing countries in the world.

However, this step is certainly not easy because recently, electric cars have been using lithium-based batteries.

"We are slowly pushing for regulations so that electric car manufacturers in Indonesia switch from a lithium base to a nickel base," said Kartika Wirjoatmodjo, Deputy Minister of State-Owned Enterprises (BUMN), as reported by Antara (06/08).

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Moreover, state-owned enterprises (BUMN) have now entered the electric battery industry. One of them is the joint project with CATL and Huayou.

“Because many factories operating in Indonesia are still lithium-based. We want support from ministries and other institutions to provide incentives for shifting to nickel-based batteries in Indonesia as well,” he then emphasized.