BESS project begins construction in Palu SEZ, targeting Rp30 trillion investment
The Indonesian government is optimistic that new investments, particularly in the energy and energy storage technology sectors, will further enhance the competitiveness of the Palu Special Economic Zone (SEZ). PT Bangun Palu Sulawesi Tengah, in partnership with Aslan Energy Capital, has begun developing a Battery Energy Storage System (BESS) project in the Palu SEZ, Central Sulawesi.
The project is targeted to attract an investment of approximately US$1.75 billion, equivalent to Rp3 decade trillion. Acting Secretary General of the National SEZ Council, Rizal Edwin Manansang, stated in Jakarta that the government believes this investment will create a multiplier effect for both regional and national economic growth.
BESS is a large-scale energy storage technology that uses batteries to capture, store, and release electrical energy. This system can store electricity from various sources, such as solar panels, wind turbines, or the main power grid, for use at any time. The commencement of the BESS project was marked by the signing of a Memorandum of Understanding (MoU) between the two companies, representing the initial step for the strategic development of a BESS Gigafactory and a clean energy industrial ecosystem in the Palu SEZ.
The project is designed to support the development of the nickel-based battery industry while strengthening the clean energy and electric vehicle (EV) supply chains in Indonesia. The investment will be developed in stages; the initial phase targets a production capacity of approximately 8 GWh per year, with potential expansion to 12–15 GWh in subsequent stages. In addition to large-scale energy storage, the project aims to support renewable energy integration, EV charging infrastructure, and export markets to the ASEAN region, Australia, and the United States. The project will also include the development of an LNG Hub.
The BESS Gigafactory is projected to create approximately 1,300 direct jobs and over 3,000 indirect jobs through the industrial supply chain and supporting sectors. This investment is expected to strengthen Palu SEZ’s position as a hub for clean energy downstreaming in Eastern Indonesia and promote the utilisation of Central Sulawesi’s nickel potential in the global battery supply chain.
Palu Mayor Hadianto Rasyid noted that the investment is vital for regional economic development, particularly regarding employment and growth. The Palu SEZ, spanning 1,500 hectares and supported by the connectivity of Pantoloan Port, plays a strategic role in domestic and export trade in Eastern Indonesia.
CEO of Aslan Energy Capital (AEC), Muthu Chezian, stated that the company conducted extensive research before deciding to invest in Palu SEZ, citing the availability of natural resources and Indonesia’s policies encouraging domestic nickel processing as primary drivers. He also highlighted the potential for supporting data centres, noting a global shift from traditional UPS systems to BESS to upgrade data centre standards. Meanwhile, Sony Panukma Widianto, President Director of PT Bangun Palu Sulawesi Tengah, confirmed the company’s readiness to provide approximately 40 hectares of industrial land and the necessary infrastructure to support the gigafactory ecosystem.