Antara News·Indonesia·Tuesday, November 3, 2026 at 01:38 AM UTC

Indonesia builds integrated nickel downstreaming industry

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Putu Indah Savitri, Yashinta Difa

Jakarta (ANTARA) - Indonesia has successfully established a fully integrated downstream nickel industry, creating a complete domestic electric vehicle (EV) battery ecosystem that spans from raw mineral extraction to finished battery cells, according to a top minister.

Speaking at the opening of the 2026 Mineral and Coal Convention and Exhibition in Jakarta on Monday (November 2), Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia highlighted the milestone as a direct result of consistent government industrialization policies.

"Thank God, now Indonesia is one of the countries that has succeeded in building a downstream industry with an integrated car battery ecosystem from mining to battery cells," Bahlil, who also serves as the Energy and Mineral Resources (ESDM) Minister, stated.

Bahlil noted that Indonesia currently houses three major battery production facilities.

These include a plant in the Indonesia Weda Bay Industrial Park (IWIP) area in Central Halmahera, North Maluku, and the Hyundai LG Indonesia (HLI) Green Power EV battery plant in Karawang, West Java, which has been operational since July 2024.

In addition, a joint venture facility between state-owned Antam and global battery giant CATL, scheduled to be inaugurated by President Prabowo Subianto later this month in Karawang.

The government attributes the aggressive push toward downstreaming to a massive leap in national export value and economic added value.

Official data shows that nickel export values skyrocketed from just US$3.3 billion in 2017 to US$40 billion by 2025.

As of August 2026, the ministry’s Directorate General of Minerals and Coal recorded nickel exports reaching US$25.96 billion.

"If we do not build downstreaming and industrialization in our country, the creation of added value will not be optimal," Bahlil emphasized, pointing to the strategy's role in keeping processing revenues domestic.

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