CATL Battery Investment in Indonesia Halved Following Chinese Government Review
Jakarta — Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, Nurul Ichwan, has stated that Contemporary Amperex Technology Co Ltd's (CATL) investment in Indonesia's battery supply chain project has undergone adjustments. Nevertheless, he confirmed the investment will continue.
He explained that the adjustment was directed by the Chinese government, as the investment constitutes outward direct investment (ODI) — investment made outside China.
"If a large company, especially a Chinese state-owned enterprise, invests outside China, it must obtain ODI approval from its government. The Chinese government evaluates projects proposed by these companies before they can invest in Indonesia," said Nurul at his office in South Jakarta on Wednesday (23/4/2025).
The decision is also linked to declining demand for electric vehicles, prompting CATL to reassess its production capacity to align with market demand.
"Based on current developments, seeing that demand for electric cars is not as expected, it makes perfect sense to re-analyse the feasible global capacity," he said.
"What was previously at a certain level has been reduced to half, and this naturally requires recalculation," Nurul added.
Indonesia Battery Corporation (IBC) has revealed that CATL's battery cell project investment stands at only half of the total pledged investment of US$1.2 billion, or approximately Rp20.16 trillion (at an exchange rate of Rp16,800 per dollar). The agreed figure has since been revised to US$417 million, or Rp7 trillion.
IBC President Director Toto Nugroho said the total investment from the Chinese company was originally intended for battery cell production with a capacity of 15 Gigawatt Hours (GWh).
"However, the ODI approval we have received from them currently covers only half. So it is approximately 6.9 GWh, or US$417 million," said Toto during a working meeting with House of Representatives Commission XII in Senayan, Central Jakarta, on Monday (17/2/2025).
He explained that the adjustment was directed by the Chinese government, as the investment constitutes outward direct investment (ODI) — investment made outside China.
"If a large company, especially a Chinese state-owned enterprise, invests outside China, it must obtain ODI approval from its government. The Chinese government evaluates projects proposed by these companies before they can invest in Indonesia," said Nurul at his office in South Jakarta on Wednesday (23/4/2025).
The decision is also linked to declining demand for electric vehicles, prompting CATL to reassess its production capacity to align with market demand.
"Based on current developments, seeing that demand for electric cars is not as expected, it makes perfect sense to re-analyse the feasible global capacity," he said.
"What was previously at a certain level has been reduced to half, and this naturally requires recalculation," Nurul added.
Indonesia Battery Corporation (IBC) has revealed that CATL's battery cell project investment stands at only half of the total pledged investment of US$1.2 billion, or approximately Rp20.16 trillion (at an exchange rate of Rp16,800 per dollar). The agreed figure has since been revised to US$417 million, or Rp7 trillion.
IBC President Director Toto Nugroho said the total investment from the Chinese company was originally intended for battery cell production with a capacity of 15 Gigawatt Hours (GWh).
"However, the ODI approval we have received from them currently covers only half. So it is approximately 6.9 GWh, or US$417 million," said Toto during a working meeting with House of Representatives Commission XII in Senayan, Central Jakarta, on Monday (17/2/2025).