Indonesia's electric vehicle battery production is scheduled to commence in 2027, as confirmed by the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia.

The Minister stated that Indonesia intends to develop an integrated electric vehicle battery ecosystem covering the entire chain from upstream to downstream.

The Government is also targeting the development of 100 GW of solar power plants (PLTS), which is expected to generate demand for the domestic battery industry.

Bahlil indicated that Huayou will begin operations in collaboration with Antam and IBC, with a total investment of approximately US$ 8 billion. The projects are targeted for completion by the end of 2027, after which Indonesia will establish a fully integrated car battery ecosystem.

The development of electric vehicle battery production aligns with the Government's programme to achieve Net Zero Emissions (NZE) by 2060 and supports President Prabowo Subianto's directive to prioritise downstreaming and accelerate the electric vehicle industry.

The Government has emphasised the use of new and renewable energy (EBT) for electricity generation, which will create additional opportunities for the domestic battery industry.

Bahlil noted that all batteries used for electricity storage are required to be produced domestically to support the energy transition and energy sovereignty.

The domestic battery ecosystem is expected to facilitate investment, as raw materials and infrastructure will be available.

According to the Ministry of Energy and Mineral Resources, this ecosystem will support investment through the availability of a domestic market, raw materials, infrastructure, and renewable energy supply.

Down streaming, identified as a Government programme, is projected to contribute to economic growth, with a target of 8% by 2029.

It is also expected to support job creation, promote equitable economic distribution across regions, and increase state revenue.