Indonesia Opens Investment Opportunities for EV Battery Development  

Jakarta: Ahmad Faisal Suralaga, Director of Downstreaming Strategy and Governance at the Ministry of Downstreaming and Investment/Investment Coordinating Board (BKPM), announced Indonesia’s plan to open investment opportunities for a USD121 billion battery manufacturing ecosystem.
 
Ahmad noted Indonesia’s abundance of natural resources that serve as the core foundation for battery production and electric vehicle (EV) manufacturing.
 
“Of the six key materials used to manufacture EV batteries, four are found in Indonesia. We possess nickel, bauxite, manganese, and copper – all essential materials in the EV battery supply chain. This advantage provides Indonesia with a strong foundation to develop the entire supply chain,” Ahmad remarked during the Korea-Indonesia Economic Partnership Forum in Jakarta, as reported by Antara on Wednesday, June 24, 2026.
 
Ahmad highlighted Indonesia’s mantle as the world’s largest nickel producer, holding 42 percent of global reserves. Beyond nickel, Indonesia has also developed 28 other commodities that provide competitive advantages under its downstreaming strategy.
 
“By 2045, Indonesia intends to become one of the world’s top five EV battery producers. This is achievable because downstreaming creates tremendous added value; the value of nickel can multiply up to 67-fold when processed into EV batteries,” he explained.
 

Focus on downstream smelter development

 According to Ahmad, investment will be primarily focused on the construction of downstream smelters to produce high-value end products, including electric vehicle (EV) battery cells.
 
He underscored Indonesia’s unique position as one of the few countries with an integrated industry spanning the entire supply chain, with many major EV battery players having already entered the Indonesian market.
 
The downstream ecosystem will help to reduce costs associated with fragmented production networks –,such as export duties and taxes,– by consolidating resources and operations domestically.
 
Ahmad stated that through investment and the downstream approach, the country’s investment value could potentially reach upwards of USD618 billion, boosting export value by USD857 billion, and creating more than three million jobs in the process.
 
He further added that foreign investment in Indonesia remains dominated by the minerals sector at around IDR 98.3 trillion, followed by the plantation and forestry sector (IDR 29.8 trillion), the oil and gas sector (IDR 17.6 trillion), and the marine sector (IDR 1.7 trillion).
 
(Jonathan Sianto)