Antara News·Indonesia·Wednesday, September 30, 2026 at 02:36 PM

Indonesia targets EV battery, BESS expansion in phase 2 downstream

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Ahmad Muzdaffar Fauzan, Yashinta Difa

Jakarta (ANTARA) - Indonesia is stepping up its push into electric vehicle (EV) battery production, battery energy storage systems (BESS), and high added-value manufacturing as it enters the second phase of its strategic critical mineral downstreaming initiative.

Deputy for Strategic Investment Downstream at the Investment and Downstreaming Ministry Heldy Satrya Putera said in a statement on Wednesday that the country is transitioning beyond initial mineral processing toward advanced end-product supply chains.

The government has outlined a strategic downstreaming roadmap covering 28 core commodities, with an estimated investment requirement of US$618.1 billion through 2040.

"Currently, our priority is entering phase two, namely expanding development to the electric vehicle battery industry, battery energy storage system, and other high added value manufacturing," Heldy stated, following the initial phase of establishing domestic smelters and refining facilities.

The strategy is backed by substantial capital inflows. Downstream investment realization in the first half of 2026 reached Rp300.1 trillion (approximately US$16.86 billion)—accounting for 29.7 percent of total national investment and marking a 6.9 percent increase year-over-year.

Foreign direct investment (FDI) accounted for the majority of the total at Rp212.8 trillion (US$11.96 billion) or 70.9 percent, while domestic direct investment reached Rp87.3 trillion (US$4.90 billion) or 29.1 percent.

Heldy emphasized that the next phase aims to strengthen market competitiveness, increase long-term capital inflows, and enhance the capability of national industries to supply global markets.

To support these objectives, the ministry, in partnership with Fastmarkets, is hosting the International Critical Minerals and Metals Summit (ICMMS) in Bali on September 27–30, 2026.

The summit brings together government officials, investors, battery material producers, financial institutions, and commodity traders.

Discussions at the event focused heavily on the economics of high-pressure acid leach (HPAL) nickel processing, technology integration, and the commercial viability of precursor and cathode manufacturing.

The summit also addresses challenges in precursor and cathode development, focusing on raw material availability, technology transfer, product quality, off-take certainty, and project viability—to ensure Indonesian battery materials remain competitive in the global EV supply chain.

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