Government Boosts Downstreaming of EV Battery Industry, Encourages Energy Self-Sufficiency and Economic Growth
Jakarta – The government continues to demonstrate its seriousness in accelerating the downstreaming of the electric vehicle (EV) battery industry as part of the transition efforts towards clean energy and economic growth based on value-added industries. Major projects currently being worked on, such as in Karawang and East Halmahera, are a symbol of the government’s commitment to creating national energy security and accelerating the achievement of the net zero emission (NZE) target by 2060.
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 is a strategic step. Projects like the one in Karawang are not only strengthening the national economy, but also an effort to realize energy self-sufficiency. This is part of President Prabowo’s Asta Cita mission in sustainable downstreaming of natural resources, she said.
The development of this industry is also expected to create a multiplier effect on the local economy. In addition to opening thousands of jobs, MSMEs around the industrial area are also encouraged to grow as part of the supporting ecosystem.
The EV battery industry project in Karawang, which is projected to have a capacity of up to 15 GWh, is predicted to save fuel imports of up to 300,000 kiloliters per year. This shows the alignment between the downstream policy and the long-term goal of energy independence.
UGM energy economics observer, Fahmy Radhi, assessed that downstreaming followed by industrialization is a way out of dependence on domestic consumption. With investment in strategic sectors such as EV batteries, Indonesia has the opportunity to become an advanced industrial country, he said. He also emphasized the importance of technology transfer so that local workers can develop along with industrial progress.
In East Halmahera, North Maluku, the Integrated EV Battery Industry project has also started. Governor Sherly Tjoanda Laos conveyed the local government’s full support for the project which she considered capable of being a driving force for the economy in the eastern region. Development is not only about technology, but also about justice. We want the community, including the 11 indigenous tribes in this region, to feel real benefits, she said.
The project, which is under the coordination of the Danantara holding, also involves global consortiums such as CATL, Brunp, and Lygend, with an investment value reaching USD 5.9 billion. The operational target in Karawang is projected to start in 2026 with a domestic and export market orientation.
This step confirms that accelerating EV battery downstreaming is not just a matter of investment, but part of a grand strategy towards energy independence and inclusive sustainable development.
