Indonesia Targets Top Five Position in Global EV Battery Production by 2040
JAKARTA. The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has stated that Indonesia is targeting a position among the world's top five electric vehicle battery producing nations by 2040.
According to BKPM Deputy for Investment Implementation Control Edy Junaedi, in addition to the EV battery production target, Indonesia also aims to become the world's second-largest stainless steel producer by 2040.
"The targets are top five for EV battery producing nations and top two for stainless steel producing nations," Edy said in his remarks at the Indonesia ESG Forum 2025 in Jakarta on Monday.
The targets are closely linked to mineral downstream processing, particularly nickel, which serves as the raw material for both products.
Nickel used as a raw material for batteries is refined through High-Pressure Acid Leaching (HPAL) smelter technology. HPAL smelters process limonite-type nickel ore into battery-ready forms such as Mixed Hydroxide Precipitate (MHP) and nickel sulphate.
Meanwhile, nickel used for stainless steel production is processed through Rotary Kiln Electric Furnace (RKEF) smelters, which use high-grade saprolite nickel ore.
Edy was unable to specify the investment value or targets required to achieve increased production of both nickel types. "Those are production targets. As for investment figures, they depend on nickel prices, so investment amounts cannot be targeted," he added.
In more detail, Edy said that downstream nickel investment through to 2040 has a potential value of up to US$127.9 billion, with the potential to create up to 357,000 jobs.
"And a contribution to Gross Domestic Product of US$43.2 billion, along with an export increase of US$21 billion," he added.
Investment in the mineral and coal sector, including nickel, is one of Indonesia's key instruments for achieving 8 per cent economic growth and an investment target of 16.75 per cent for the 2024-2029 period.
"To support President Prabowo's astacita agenda, the 2025 investment target is Rp1,095 trillion," he said.
According to BKPM records, since the enactment of Law Number 3 of 2020 concerning the ban on nickel ore exports, investment progress from 2020 through the third quarter of 2024 has reached Rp514.8 trillion in realised investment. A total of 194 companies have invested, with production capacity of 44,959 kilotonnes per annum and additional employment of 192,840 workers.
"From 2025 to 2045, nickel utilisation will be directed primarily towards EV batteries, EV components, and stainless steel," Edy said.
According to BKPM Deputy for Investment Implementation Control Edy Junaedi, in addition to the EV battery production target, Indonesia also aims to become the world's second-largest stainless steel producer by 2040.
"The targets are top five for EV battery producing nations and top two for stainless steel producing nations," Edy said in his remarks at the Indonesia ESG Forum 2025 in Jakarta on Monday.
The targets are closely linked to mineral downstream processing, particularly nickel, which serves as the raw material for both products.
Nickel used as a raw material for batteries is refined through High-Pressure Acid Leaching (HPAL) smelter technology. HPAL smelters process limonite-type nickel ore into battery-ready forms such as Mixed Hydroxide Precipitate (MHP) and nickel sulphate.
Meanwhile, nickel used for stainless steel production is processed through Rotary Kiln Electric Furnace (RKEF) smelters, which use high-grade saprolite nickel ore.
Edy was unable to specify the investment value or targets required to achieve increased production of both nickel types. "Those are production targets. As for investment figures, they depend on nickel prices, so investment amounts cannot be targeted," he added.
In more detail, Edy said that downstream nickel investment through to 2040 has a potential value of up to US$127.9 billion, with the potential to create up to 357,000 jobs.
"And a contribution to Gross Domestic Product of US$43.2 billion, along with an export increase of US$21 billion," he added.
Investment in the mineral and coal sector, including nickel, is one of Indonesia's key instruments for achieving 8 per cent economic growth and an investment target of 16.75 per cent for the 2024-2029 period.
"To support President Prabowo's astacita agenda, the 2025 investment target is Rp1,095 trillion," he said.
According to BKPM records, since the enactment of Law Number 3 of 2020 concerning the ban on nickel ore exports, investment progress from 2020 through the third quarter of 2024 has reached Rp514.8 trillion in realised investment. A total of 194 companies have invested, with production capacity of 44,959 kilotonnes per annum and additional employment of 192,840 workers.
"From 2025 to 2045, nickel utilisation will be directed primarily towards EV batteries, EV components, and stainless steel," Edy said.