Indonesia targets US$121 billion EV battery investment push

..the added value of nickel could increase up to 67 times if we successfully convert it into EV batteries..

Jakarta (ANTARA) - Indonesia is pitching its vast nickel and mineral wealth to global markets, opening the door for an estimated US$121 billion in investment opportunities to build an integrated national electric vehicle (EV) battery ecosystem.

Speaking at the Korea-Indonesia Economic Partnership Forum here on Wednesday, Ahmad Faisal Suralaga, Director of Downstream Strategy and Governance at the Downstreaming and Investment Ministry, declared that Indonesia is uniquely positioned to play a major role in future clean energy supply chains.

"Out of the six main materials needed to build EV batteries, four are found in abundance right here in Indonesia. We have nickel, bauxite, manganese and copper. They are important materials in the EV battery supply network,” Suralaga said.

He noted that these mineral advantages give Indonesia a strong foundation to develop downstream industries that process raw minerals into finished battery components and electric vehicles.

Indonesia is currently the world’s largest nickel producer, accounting for 42 percent of global supply.

Beyond nickel, the government has mapped 28 other strategic commodities slated for value-added processing under its national downstream strategy.

Suralaga stated that the government aims to establish a highly competitive industry covering everything from raw mineral supply chains to final battery packaging. By 2045, Indonesia intends to rank among the top five EV battery producers globally.

"This is possible as downstreaming creates the highest additional value. For example, the added value of nickel could increase up to 67 times if we successfully convert it into EV batteries," he explained.

He added that a localized downstream ecosystem reduce costs linked to fragmented global supply chain production networks, such as export duties, foreign taxes and international logistics. Several major global EV battery players have already entered the Indonesian market to tap into this integrated ecosystem.

According to ministry data, the long-term downstream strategy could drive total investment value to US$618 billion. This industrial shift is also expected to boost export value to US$857 billion and create more than 3 million jobs.

Currently, investment in Indonesia is still heavily concentrated in the mineral sector at around Rp98.3 trillion (US$6.18 billion).

The plantation and forestry sector follows at Rp29.8 trillion (US$1.67 billion), while oil and gas stands at Rp17.6 trillion (US$988.7 million), and the maritime sector contributes Rp1.7 trillion (US$95.5 million).

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Translator: Fitra Ashari, Yashinta Difa

Editor: M Razi Rahman

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