Indonesia has taken a major step toward strengthening its clean energy and electric vehicle supply chains with the signing of a framework agreement to develop an integrated battery industry, a project that will also support the country’s ambitious 100 GW solar power expansion programme.
The agreement was signed in Jakarta on January 30 between PT Industri Baterai Indonesia (IBC), PT Aneka Tambang Tbk. (ANTAM), and the HYD Investment Limited (HYD) Consortium, with state-owned utility PT PLN (Persero) backing the initiative as a key shareholder in IBC.
Energy and Mineral Resources Minister Bahlil Lahadalia said the project, valued at USD 6 billion, is aligned with President Prabowo Subianto’s directive to accelerate national downstream industrial development while prioritizing state interests. The project is designed to deliver up to 20 GWh of electric battery production capacity and generate around 10,000 jobs.
“This project is not only intended to support electric vehicle batteries, but is also designed to meet the energy storage requirements of the national 100 GW solar power plant programme,” Bahlil said, highlighting its strategic role in strengthening Indonesia’s renewable energy infrastructure.
The project will support the development of a comprehensive battery and cathode ecosystem in West Java, alongside mining, smelting, and downstream manufacturing facilities planned in East Halmahera, North Maluku. Bahlil stressed that domestic labour and companies will be prioritized wherever feasible to strengthen local industrial capacity.
IBC President Director Aditya Farhan Arif said the agreement marks the initial phase of a long-term strategy to establish a fully integrated national battery industry, focusing not only on investment but also on technology transfer and industrial capability building.
“Through partnerships with global industry leaders, we aim to ensure knowledge and technology transfer that strengthens the domestic battery industry while supporting Indonesia’s broader energy transition agenda,” Aditya said.
He added that the project will next enter a joint feasibility study phase, followed by definitive agreements, with the aim of advancing development within the year.
PLN President Director Darmawan Prasodjo said the initiative is critical for enhancing Indonesia’s power system resilience and enabling greater integration of renewable energy, particularly solar.
“A strong domestic battery ecosystem is essential for optimizing renewable energy utilisation, accelerating electric vehicle adoption, and strengthening national energy security,” Darmawan said.
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