EV-BESS Battery Development Becomes BKPM Focus in Driving Downstreaming
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is strengthening the development of the electric vehicle (EV) battery industry, Battery Energy Storage Systems (BESS), and high-value-added manufacturing as part of the advanced stage of strategic mineral downstreaming in Indonesia.
Heldy Satrya Putera, Deputy for Strategic Investment Downstreaming at the Ministry of Investment and Downlarstreaming/BKPM, stated that the development of EV and BESS batteries is part of the second phase of downstream industry development, following the construction of smelters and refining facilities.
In an official statement received in Jakarta on Wednesday, Heldy noted that the agency has drafted a downstream industry development roadmap covering 28 strategic commodities, with an estimated investment requirement reaching US$618.1 billion until 2040.
According to him, Indonesia’s downstream development is currently being implemented through three strategic stages. The first stage serves as a foundation through the construction of mineral processing facilities, including smelters and refineries.
“Currently, our priority is entering the second stage, which is expanding development into the electric vehicle battery industry, Battery Energy Storage Systems (BESS), and other high-value-added manufacturing,” said Heldy.
He reported that downstream investment realisation has reached a significant scale. In the first semester of 2026, downstream investment was recorded at Rp300.1 trillion, representing 29.7 per cent of the total national investment realisation.
This figure represents a 6.9 per cent increase compared to the same period in the previous year.
Of the total investment, foreign direct investment (PMA) reached Rp212.8 trillion or 70.9 per cent, while domestic direct investment (PMDN) was recorded at Rp87.3 trillion or 29.1 per cent.
This investment achievement is part of the development of Indonesia’s downstream industry and opens opportunities to strengthen the national position in the global critical mineral value chain.
The next stage is directed towards strengthening competitive markets, increasing long-term investment, and developing the capabilities of the national industry to produce products that meet the needs of global buyers.
To strengthen the development of this sector, the Ministry of Investment and Downstreaming/BKPM, together with Fastmarkets, will organise the International Critical Minerals and Metals Summit (ICMMS) from 27–30 September 2026 in Bali.
The event will bring together government officials, investors, industry players, processing companies, battery material producers, financial institutions, and commodity traders from various countries.
In the nickel processing sector, discussions during the event will cover the economics of High Pressure Acid Leach (HPAL), the competitiveness of sulphuric acid, and processing technology options.
Meanwhile, the development of precursors and cathodes faces more complex challenges, ranging from raw material availability, technology, and product quality to buyer certainty and project economics.
Therefore, discussions regarding battery materials at ICMMS 2026 will also highlight the development of downstream products that possess market potential and are capable of competing in the global electric vehicle supply chain.