August 5, 2025 | 05:48 pm
TEMPO.CO, Jakarta - The Indonesian government is encouraging electric vehicle (EV) manufacturers to shift away from lithium-based batteries and use nickel-based ones instead. The statement was conveyed by the Deputy Minister of State-Owned Enterprises (SOEs), Kartika Wirjoatmodjo, after the 2025 International Battery Summit in Jakarta on Tuesday, August 5, 2025.
"We are gradually pushing to regulate EV manufacturers in Indonesia to also shift from lithium-based to nickel-based batteries," Kartika said, as quoted from Antara.
According to him, SOEs are now involved in electric vehicle battery projects, such as those in collaboration with CATL and Huayou. Additionally, state-owned companies are also calling for increased investment in the midstream industry.
"Many factories operating in Indonesia are currently lithium-based. We want support from other ministries to provide incentives for the shift to nickel-based batteries in Indonesia," Kartika said.
Furthermore, Kartika mentioned that the global battery demand is projected to reach 8,800 gigawatt hours (GWh) by 2040. Thus, supply chains play a crucial role in meeting this demand.
The deputy minister believes that Indonesia can capitalize on this momentum by securing raw material supplies, improving supply chain efficiency, and establishing strategic partnerships and collaborations.
President Prabowo had previously inaugurated the integrated electric vehicle battery industry ecosystem project by the ANTAM-IBC-CBL consortium at the Artha Industrial Hills (AIH) area in Karawang on June 29, 2025.
The battery industry project is a collaboration between PT Aneka Tambang Tbk (Antam), Indonesia Battery Corporation (IBC), and the CATL, Brunp, and Lygend consortium (CBL). The electric vehicle battery project is developed from upstream to downstream, with a total of six sub-projects, five of which are located in East Halmahera and one in Karawang.
As part of the National Strategic Project (PSN), the project's investment value reaches US$5.9 billion and covers an area of 3,023 hectares, with the potential to employ up to 8,000 workers and develop 18 infrastructure projects, including a multifunctional dock.
The project is also designed to be environmentally friendly, utilizing a combination of energy sources such as 2x150 MW coal-fired power plants, 80 MW gas turbine power plants, 30 MW waste heat power generation, and 172 MWp of solar power, including 24 MWp at the Karawang plant.
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