Central Java Remains Investment Magnet, Australian Firm Pours US$350 Million into Batang

SEMARANG — Central Java has proven itself to remain a magnet for foreign investment after Australian company Pure Battery Technologies (PBT) committed to investing approximately US$350 million in the Batang Industropolis Special Economic Zone (KEK). The investment, which is in the precursor cathode active material (PCAM) production facility sector, is projected to absorb around 1,000 workers during its construction phase. The plant is planned to begin construction in 2027. PBT Chairman Stephen Wilmot said the company is currently undertaking engineering work in preparation for the plant’s construction. “We hope to begin construction next year,” he said during an audience with Central Java Governor Ahmad Luthfi at the governor’s office on Monday (3/8/2026). Once operational, the plant is expected to require around 200 permanent workers. That figure does not include workers in supporting sectors such as logistics, transportation, and shipping. Wilmot stressed that PBT will prioritise local workers. The company will also provide education and training so that local communities have the skills required by the battery industry. “We do not want to bring in workers from other countries. We want to train local people so they can work in our factory,” he said. According to Wilmot, the project in Central Java is the largest investment PBT has ever made. The scale of the plant is estimated to be more than four times that of the company’s refining facility in Germany. The plant is projected to generate revenue of around US$900 million per year. However, realisation will depend on the development of nickel prices. He added that PBT plans to use nickel raw materials from Indonesia to build a comprehensive industrial value chain. The resulting material can be used for bus batteries, cars, and energy storage systems on the electricity grid. “We want to build the entire electric vehicle value chain, including managing batteries that have reached the end of their life. We want to recycle to ensure no environmental problems arise,” Wilmot explained. He said PBT could have built the plant in an area close to nickel mines. However, the company chose Central Java because of its strategic location, its large population, and its strong future potential as a manufacturing industry hub. “We have spent a lot of time deciding to come to Central Java. This is a very important investment for our company,” he stated. Meanwhile, Central Java Governor Ahmad Luthfi said the investment aligns with the direction of renewable energy development in the province. He hopes the plant’s output will not only be for export but also meet domestic market needs. “If possible, renewable energy such as solar panels should not only be export-oriented but also used domestically, especially in Central Java Province,” he said. According to Luthfi, the market for renewable energy and electric vehicles in Central Java is very promising. The province has a population of around 38 million people spread across 35 regencies and cities. The Central Java provincial government is also continuing to promote the use of solar panels on government buildings and exploring their use in reservoir and lake areas. In the future, public transport modes will also be directed to switch to electric vehicles. “If possible, that demand should not only be pulled from outside, but our industries should also get their supplies from there, so that it can drive domestic industry,” he concluded.