By Dania Alam Lestari )*
The Indonesian government is increasingly showing its seriousness in building the foundation of the future economy by accelerating the downstreaming of the electric vehicle battery industry. This strategic step is not only a symbol of the transformation of the energy sector, but also a real representation of the nation’s determination to free itself from dependence on fossil energy sources. The integrated electric vehicle battery industry ecosystem project that has just started in Artha Industrial Hills (AIH), Karawang, is an important milestone that marks a new era in the development of a clean and sustainable energy-based industry.
The President of the Republic of Indonesia, Prabowo Subianto, was present in person at the laying of the first stone of the ANTAM-IBC-CBL consortium project, showing that battery downstreaming is not just a technocratic policy, but part of a national strategic vision. By collaborating with global partners from China, the government is showing openness to mutually beneficial international collaboration. This also confirms that Indonesia is ready to become an important part of the global supply chain for electric vehicles, by providing strategic raw materials while producing high value-added components domestically.
This project is the largest in Southeast Asia and is a concrete form of the development of an integrated battery industry ecosystem from upstream to downstream. Starting from nickel mining, processing through smelters, making precursors and cathodes, to battery cell production and rotary kiln electric furnace (RKEF) technology, all are carried out in an integrated manner. This is a true form of downstreaming, where natural resources are not only exported raw, but are processed and developed into high-value products that support national economic independence.
In the context of the energy transition, this project is also an answer to the global challenge of reducing carbon emissions. President Prabowo emphasized that Indonesia wants to be part of the global solution to the climate crisis, by promoting environmentally friendly renewable energy. Not only that, this project is also projected to create thousands of green jobs, which will not only grow the local economy, but also equip the community with new skills that are relevant in the era of the energy transition.
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, also emphasized that this project is proof of Indonesia’s determination to switch to sustainable energy. He explained that in the medium term, the government is targeting capacity development of up to 40 GWh, in line with the increasing market demand for batteries, both for electric vehicles and solar power plants (PLTS). With this potential, Indonesia will not only become a production center, but also a major player in the global energy market.
Battery downstreaming also has a broad economic impact. By maximizing strategic minerals such as nickel, Indonesia can reduce dependence on imports, strengthen domestic industries, and increase the added value of exports. This will certainly have a direct impact on regional economic growth, especially in areas where mining and industrial facilities are located.
John Anis, President Director of Pertamina NRE, also stated that this project is an important part of the national clean energy roadmap. He emphasized that battery development is the main driving force in the energy transformation in Indonesia. The synergy between SOEs such as Pertamina NRE and global partners shows that collaboration is key to realizing a sustainable energy future. According to him, integration between sectors and technologies will create an efficient and competitive green energy system.
Furthermore, this step is in line with the government’s major agenda to strengthen the competitiveness of the national industry and improve the sustainability of development. The government is not only focusing on physical and technological development, but also on the development of human resources who will manage and develop this ecosystem. Vocational education, workforce training, and increasing R&D capabilities are integral parts of the national battery downstream strategy.
The success of this project will also send a strong message to the world that Indonesia is not only a country that produces natural resources, but is also capable of being a producer of technology and innovation. The government under the leadership of President Prabowo continues to emphasize the importance of developing inclusive and competitive green infrastructure, so that all levels of society can feel the direct benefits of this transformation.
The development of an integrated electric vehicle battery industry ecosystem is real evidence that downstreaming is not just a political jargon, but a long-term economic strategy built with careful planning, strong policy support, and cross-sector commitment. As the world moves towards an era of zero-emission vehicles and clean energy, Indonesia has taken a strategic position to become a key player in this change.
With a foundation that continues to be strengthened through battery downstreaming, Indonesia is not only building a new industry, but also designing its economic future. A future that no longer relies on raw material exports, but on innovation, technology, and sustainability. A future where clean energy is the main pillar of the nation’s progress. The government has turned on the transformation engine, and now is the time for all elements of the nation to unite to ensure that this engine continues to move towards independence and equitable prosperity.
)* the author is an energy policy observer
