Indonesia pushes circular economy for EV battery industry

We are also considering international regulations, such as the EU Battery Passport..

Jakarta (ANTARA) - Indonesia has already transitioned toward a circular economy to address the emerging challenges from electric vehicle (EV) battery production, an official at the Ministry of Investment and Downstreaming said here on Wednesday.

The ministry's Director of Downstreaming Strategy and Governance, Ahmad Faisal Suralaga, stated that globally, the supply of EV batteries faces several challenges, including mineral availability, the need for decarbonization, and concerns over sustainable resources.

"To achieve sustainability, the Indonesian government has enacted a policy that goes beyond simply extracting resources for battery production; we are now moving toward recycling," he said during the Korea-Indonesia Economic Partnership Forum in Jakarta.

Currently, the global transition to renewable energy and electrification is accelerating rapidly. Batteries have become critical components in industrial competitiveness, energy security, and sustainable development.

At the same time, increased battery production and usage present new challenges related to resource efficiency, waste management, and environmental sustainability.

Ahmad noted that the Indonesian government has a comprehensive regulation for companies supporting battery recycling, which will also be linked to globally adopted regulations.

According to him, battery recycling can bolster Indonesia's position within the EV battery production supply chain, enabling the country to become fully integrated in battery production, from raw material preparation to end-product manufacturing.

To support this initiative, he stated that Indonesia has transformed itself from an exporter of raw materials into a nation that generates high value through industrial downstreaming, where raw materials are transformed into finished products with higher value.

Ahmad added that Indonesia is also reforming its business policies to mitigate risks and implementing an integrated system to streamline the process for investors through a single-window clearance.

"We are also considering international regulations, such as the EU Battery Passport, which has been implemented in several countries. In the future, perhaps we can discuss how Indonesia can align with these international standards," he remarked.

On that occasion, he also invited South Korean investors to bring in technologies that support the circular economy and to complete the supply chain from nickel extraction to battery recycling facilities.

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Translator: Fitra Ashari, Raka Adji

Editor: M Razi Rahman

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