By: Bara Winatha*)
The government continues to demonstrate its seriousness in accelerating the downstreaming of the electric vehicle (EV) battery industry and supporting the transition to clean energy. This step is seen as a long-term strategy in creating national energy security while encouraging economic growth based on high value-added industries. In recent years, the downstreaming of natural resources, especially nickel as the main raw material for EV batteries, has become the main focus of national economic development.
Member of Commission XII of the Indonesian House of Representatives from the PKS Faction, Meitri Citra Wardani, said that the development of the EV battery industry, such as the one currently underway in Karawang, is a strategic step that not only supports the strengthening of the national economy, but also accelerates the realization of energy self-sufficiency. She considered this project as a reflection of President Prabowo Subianto’s commitment to realizing the Asta Cita mission, especially in terms of sustainable downstreaming of natural resources.
Furthermore, active involvement of residents around the industrial area is key to distributing the positive impacts of development. The battery industry project has the potential to create thousands of new jobs and encourage the growth of local MSMEs as part of the economic chain effect. The importance of collaboration between Indonesia as a country that owns mineral resources and partner countries that master processing technology.
The development of the EV battery industry, which is projected to have a capacity of up to 15 GWh, is estimated to save fuel imports of up to 300,000 kiloliters per year. This figure is proof that the policy is in line with the spirit of achieving energy independence and self-sufficiency in the future.
On the other hand, energy economics observer from Universitas Gadjah Mada (UGM), Fahmy Radhi, said that downstreaming followed by industrialization will take Indonesia out of dependence on domestic consumption alone. He assessed that by developing the manufacturing sector through investment in strategic industries such as electric vehicle batteries, Indonesia has the opportunity to become an industrial-based developed country. This downstreaming will significantly increase the competitiveness of the national industry.
Investment in the development of the battery industry ecosystem does not stop at the construction of the smelter alone. The process must continue until the final stage of production and needs to be equipped with a commitment to technology transfer so that local workers can develop along with the progress of the industry. Agreements on technology transfer are important, especially when the skills of local workers are still in the process of being strengthened. This battery industry project has a strategic role in realizing the target of net zero emissions (NZE) by 2060.
Meanwhile, in eastern Indonesia, the development of the battery industry has also begun to show signs of activity. The Integrated EV Battery Industry Project in Tanjung Buli, East Halmahera, is considered a concrete step in raising the economic potential of eastern Indonesia. North Maluku Governor Sherly Tjoanda Laos said that the regional government fully supports the mineral downstreaming agenda which is a national priority.
The project is expected to open new access for economic development in the region that has been relatively underdeveloped. He said that the indigenous people in the region have shown a high commitment to supporting the success of the project. At least 11 indigenous tribes have expressed their readiness to contribute to the development of this industrialization-based region.
Furthermore, Sherly emphasized that the success of development is not only measured by technology or infrastructure, but also by the sincerity of all parties to ensure that all levels of society receive fair benefits. She called this project a symbol of the economic revival of eastern Indonesia and a real manifestation of equitable development.
The project in East Halmahera covers the entire battery industry ecosystem, from mining, raw material processing, to recycling facilities with a circular economy approach. President Director of PT Aneka Tambang Tbk (ANTAM), Achmad Ardianto, stated that the company is committed to involving local stakeholders in every stage of development.
It is estimated that more than 8,000 workers will be directly absorbed in the project. In addition, ANTAM also designs training programs to improve the competence of local human resources as part of a sustainable development strategy.
The central government through the Ministry of SOEs also strengthens this step by providing concrete support for the development of an integrated electric vehicle battery industry ecosystem. Projects developed under the coordination of the Danantara holding include strategic cooperation between SOEs, national mining companies, and global consortiums such as CATL, Brunp, and Lygend.
The investment value reaches USD 5.9 billion, making this project one of the largest national strategic projects (PSN) in the renewable energy sector. In Karawang, the construction of a battery factory with an initial capacity of 6.9 GWh will be continued to reach 15 GWh in the next five years, and is targeted to start operating in 2026.
This project is not only aimed at meeting domestic needs, but is also directed to serve the export market. By strengthening the industrial supply chain from upstream to downstream, Indonesia positions itself as an important player in the international electric vehicle battery market.
Accelerating battery downstreaming and energy transition is part of a grand strategy towards national energy independence and sustainable economic growth. The government, private sector, academics, and local communities need to continue to strengthen collaboration to ensure that the benefits of development are felt by all Indonesian people.
*)The author is a social and community observer
