Indonesian Political, Business & Finance News

Government Accelerates Development of Integrated Electric Vehicle Battery Industry

| | Source: MEDIA_INDONESIA Translated from Indonesian | Energy
Government Accelerates Development of Integrated Electric Vehicle Battery Industry
Image: MEDIA_INDONESIA

The development of the electric vehicle battery industry in Indonesia continues to move towards an increasingly integrated ecosystem, ranging from the processing of mineral raw materials, production of battery components, to the management of battery waste through sustainable recycling processes. Within this ecosystem, the collaborative programme between the Indonesian Government and the United Nations Development Programme (UNDP), Entrev, plays a supporting role in preparing Indonesia to face the electric vehicle transition, particularly through strengthening human resource capacity and developing competency standards in the electrical energy sector, which serves as an important foundation for the national electric vehicle industry.

The development of the electric vehicle battery industry is currently one of the government’s strategic agendas in promoting downstream processing of mineral resources, particularly nickel, which Indonesia possesses in substantial quantities. The collaboration between Mind Id Group, PT Industri Baterai Indonesia (IBI), and the Huayou (HYD) consortium is expected to accelerate the formation of an integrated and sustainable electric vehicle battery supply chain.

The Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that the government is committed to building a comprehensive electric vehicle battery industry chain from upstream to downstream sectors. This encompasses the nickel mining process, processing through smelters, high pressure acid leaching (HPAL) facilities, precursor and cathode production, and battery cell manufacturing.

“We want this project to provide maximum added value for the nation. Downstream processing must become a lever for national economic growth whilst strengthening strategic domestic industries,” said Bahlil.

He added that the development of the electric vehicle battery industry not only provides added value to mineral commodities but also creates broad economic impacts for regions, expands employment opportunities, and strengthens national energy security in facing the transition towards clean energy. He conveyed this during Training and Certification of Competency Standards for Electrical Energy Technical Personnel in the Sub-field of Operation of Electrical Power Utilisation Installations, organised by the Directorate General of Electrical Energy of the Ministry of Energy and Mineral Resources together with Entrev on 3-5 March 2026 at the PT PLN UP3 Office, Banguntapan, Bantul, Special Region of Yogyakarta.

In line with this step, Entrev National Project Manager, Nasrullah Salim, stated that accelerating the development of the electric vehicle ecosystem requires support from a complete ecosystem, ranging from policy, industrial investment, to the readiness of competent human resources.

“The development of the electric vehicle battery industry will have a major impact on national energy transformation. However, the success of this ecosystem also depends heavily on the readiness of a workforce possessing technical competency in the electrical energy sector and electric vehicle infrastructure,” said Nasrullah Salim.

Through various capacity-building activities such as training and certification of electrical technicians carried out together with the Directorate General of Electrical Energy of the Ministry of Energy and Mineral Resources, his team endeavours to support the creation of skilled workers ready to face developments in electric vehicle technology. “We believe that strengthening human resource competency is one of the key factors for Indonesia not only to become an electric vehicle market but also to become a centre for electric vehicle industry and innovation in the region,” concluded Nasrullah Salim.

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