Indonesia is positioning itself as a major player in the global clean energy transition, with a national strategy that places batteries and electric vehicles (EVs) at its core. The government’s approach combines ambitious adoption targets, downstream industrialisation, and foreign investment. But as Prof. Dr Evvy Kartini, founder of the National Battery Research Institute (NBRI) and professor at the National Research Innovation Agency (BRIN), explains in an email interview with e27, the path forward remains complex.

Indonesia’s efforts to promote EV adoption date back to a 2019 presidential regulation. The regulation set out bold 2030 targets: 14 million electric two-wheelers and 4 million electric four-wheelers. These commitments align with the country’s pledge to the Paris Agreement.

Yet, progress has been slower than anticipated. “Though the number of EV products sold increased twice this year, [it is] still below one million,” Prof. Dr Kartini says. She points to persistent barriers, including high costs compared with internal combustion cars and limited infrastructure. “The infrastructure of charging stations or swap stations, as well as the standardisation and safety, are still a concern in Indonesia.”

Government incentives, such as tax exemptions, have been introduced to spur demand, but the gap between targets and reality highlights the scale of the challenge.

Downstreaming nickel for strategic advantage

Indonesia’s new administration has placed industrial downstreaming at the centre of its energy and economic strategy. Under its “Asta Cita” or eight-vision framework, the fifth vision is dedicated to expanding value-added industries. Nickel, which Indonesia holds the world’s largest reserves of, is at the heart of this plan.

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“With this vision, we expect that the ‘nickel’, for example… could be processed to become not only Mixed Hydroxide Precipitate (MHP) but also the battery precursors and cathode materials in Indonesia,” Prof. Dr Kartini explains.

With vast nickel reserves, Indonesia is investing in EVs and batteries to boost its role in Asia’s clean energy future.  The government has already opened investment in upstream and midstream industries, and a gigawatt-hour (GWh) battery factory project broke ground in June. It is led by a consortium of state-owned miner ANTAM, the Indonesia Battery Corporation (IBC), and China’s Contemporary Amperex Technology Limited (CATL/CBL).

The professor, who recently spoke at Thailand’s 3rd ASEAN Battery Technology Conference 2025, argues that this will create a more efficient supply chain. “The existence of a battery factory with supply chains from Indonesia will reduce the cost of production,” she says.

Despite these opportunities, Prof. Dr Kartini cautions against potential mismatches between policy plans and industry realities. She cites the ongoing debate between lithium iron phosphate (LFP) and nickel manganese cobalt (NMC) battery chemistries as a possible stumbling block.

“The issue of using LFP instead of NMC for the EV may become the burden for this program,” she says.

The government risks undermining its nickel-centred industrial policy without precise regulation or incentives favouring nickel-based EVs.

Innovation and sustainability

Prof. Dr Kartini sees technological innovation and sustainability as essential for the industry’s long-term viability. “The innovation in the battery industry is finding a material that can provide higher energy density and a larger capacity. [It must also be] lightweight but with high power density and fast charging. It should be friendly to the user and the environment and safe to use,” she says.

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She also stresses the importance of circular economy practices, particularly battery recycling. “The circular economy, such as the reuse and recycling of spent lithium-ion batteries, must be carried out; do not wait until it burdens the environment and society at the end,” she warns.

Indonesia’s trajectory has attracted significant foreign investment across the battery value chain. Prof Dr Kartini points to progress across all stages: upstream mining, midstream battery manufacturing, and downstream applications in EVs and renewable energy. “Indonesia has already reached a milestone and will become the largest battery producer through the consortium of ANTAM-IBC-CBL,” she says.

With its domestic market and regional links, Indonesia is well-positioned to play a central role in Asia’s EV sector. She predicts that four-wheeler EVs, particularly affordable imports from China, Korea, Vietnam, and Japan, will dominate soon.

However, the success of this plan depends on whether regulatory clarity, infrastructure investment, and technological innovation can keep pace with targets. Realising Indonesia’s vision will require alignment between government, industry, and innovation: “Otherwise, it will be very difficult in the end to penetrate the market.”

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Image Credit: ABTC 2025

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