Indonesian Political, Business & Finance News

Parliament: Battery Supply Chain Must Be Integrated from Upstream to Downstream

| Source: VIVA Translated from Indonesian | Energy
Parliament: Battery Supply Chain Must Be Integrated from Upstream to Downstream
Image: VIVA

The Chair of the DPR RI Commission XII Working Visit Team, Putri Zulkifli Hasan, has stressed that the development of the national battery industry is a strategic government agenda in supporting clean energy transitions and strengthening the low-carbon economy.

Putri made this statement during her inspection of the electric vehicle battery ecosystem project in Karawang, West Java, on Friday, 17 April 2026.

According to Putri, the government’s mineral downstreaming policy is no longer solely focused on increasing the added value of natural resources but is also directed towards building an integrated industrial supply chain from the mining sector to manufacturing.

“Through the downstreaming policy, the government is encouraging the formation of an integrated supply chain from the upstream mining sector to the downstream battery manufacturing industry. This makes the linkages between the energy, mining, and industrial sectors even closer and more strategic,” said Putri in her official statement on Saturday, 18 April 2026.

She explained that the transformation of the clean energy-based industry is now one of the national priorities. In her view, developing a domestic battery ecosystem can serve as an important foundation for enhancing Indonesia’s competitiveness amid global industrial changes.

Putri assessed that Indonesia has significant opportunities supported by strategic mineral reserves such as nickel, cobalt, manganese, and copper, which are needed as main raw materials for batteries. This potential must be utilised through industrialisation so that its economic benefits can be felt more broadly.

In addition to strengthening the industry, developing the battery ecosystem is also seen as capable of opening new job opportunities, improving national technological capabilities, and expanding Indonesia’s chances of entering the global battery industry supply chain.

On the same occasion, the President Director of Indonesia Battery Corporation (IBC), Aditya Farhan Arif, stated that the battery production facility in Karawang is targeted to begin commercial operations in the early third quarter of this year.

“IBC, as a member of the MIND ID Group, is committed to strengthening Indonesia’s position in the global battery supply chain while driving strong economic growth, in line with the President’s Asta Cita mandate,” he said.

Aditya explained that this battery production facility produces lithium-ion batteries with NMC (nickel manganese cobalt) and LFP (lithium ferro phosphate) chemical compositions, both of which are needed to support the national energy transition agenda.

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