Palu Special Economic Zone Secures Investment Commitments Worth Up to IDR 30 Trillion for LNG Hub Development
Bisnis.com, Jakarta — The Palu Special Economic Zone (KEK) has recorded strategic investment commitments worth US$1.75 billion, equivalent to more than IDR 30 trillion, for the development of a Battery Energy Storage System (BESS) Gigafactory and an LNG Hub.
This substantial investment was officially agreed upon through the signing of a Memorandum of Understanding (MoU) between PT Bangun Palu Sulawesi Tengah and Aslan Energy Capital in Jakarta on Monday, May 11, 2026.
The partnership includes the construction of large-scale battery production facilities and a clean energy ecosystem to strengthen the national electric vehicle supply chain.
Acting Secretary General of the National Council for Special Economic Zones, Rizal Edwin Manansang, stated that the investment in the energy storage technology sector will boost the competitiveness of the region in Eastern Indonesia.
“The government is optimistic that this investment will increase the competitiveness of the Palu KEK and create a multiplier effect for regional and national economic growth,” said Edwin in a written statement on Saturday, May 16, 2026.
In the initial phase, the facility is targeted to have a production capacity of 8 GWh per year and has the potential to be expanded to reach 15 GWh in the next stage.
In addition to supplying the domestic market and electric vehicle charging infrastructure, the products from this factory are also intended to meet export demand to ASEAN countries, Australia, and even the United States.
Meanwhile, Mayor of Palu, Hadianto Rasyid, emphasized that the realization of this project will be a driving force for the city’s economy through massive job creation.
“This investment is very important for the City of Palu because it will bring a large multiplier effect, especially on labor absorption and economic growth,” said Hadianto.
The development of the BESS Gigafactory is projected to absorb 1,300 direct workers and more than 3,000 indirect workers along the industry’s supply chain.
Aslan Energy Capital’s management, Muthu, added that Indonesia’s neutral position and the availability of nickel were the main factors in the company choosing KEK Palu as a global production base.
Furthermore, the government, through the Secretariat General of the National Council for Special Economic Zones, is committed to overseeing the implementation of this project so that it can immediately contribute to strengthening downstream industries based on clean energy.