Ministry of State-Owned Enterprises (BUMN), revealed that Indonesia is expected to start producing electric vehicle (EV) batteries in 2027.

This was stated by the Deputy Minister of BUMN I, Kartiko Wirjoatmodjo (Tiko). He said that currently Indonesia has started processing nickel ore in the manufacturing sector to become one of the main materials in making EV batteries.

In this way, Tiko said that Indonesia is expected to start producing EV batteries in 2027.

"We previously exported a lot of ore (nickel) and will now move into manufacturing exports. Hopefully in 2027 we will be able to produce batteries for domestic and for export as well," said Tiko to CNBC Indonesia in the BUMN Performance Report 2023 program, quoted Monday (4/9/2023).

What is clear, said Tiko, is that Indonesia is currently working with the world's largest EV battery companies, namely CATL from China and LG from South Korea who are working with PT Aneka Tambang Tbk (ANTM).

"We at MIND ID and Antam have collaborated with CATL and LG on how to build this battery ecosystem starting from upstream mining on the smelter side to the battery side," he explained.

The government is also accelerating the process of cooperation between parties to make major changes in the transformation of minerals, especially into domestic EV battery products.

"We are pushing for this to be accelerated with CATL and this can be one of the big changes in mineral transformation," he said.

On the other hand, the BUMN Mining Holding MIND ID previously stated that it would build an electric vehicle battery factory with a capacity of 15 Giga Watt (GW) in 2027. The project is predicted to require an investment of US$ 12 billion or Rp 183 trillion.

Main Director of MIND ID Hendi Prio Santoso said that his party has now started to make several breakthroughs to boost the electric vehicle ecosystem in Indonesia. One of them is by collaborating with a company from China, CATL through PT Aneka Tambang (Antam) to develop electric vehicle batteries in Indonesia.

"The plan is 15 GW until 2027. (Investment needs) US$ 12 billion," he said when met after the SOE-Private Synergy Forum, in Jakarta, Monday (14/8/2023).

However, Hendi said that the production of electric vehicle batteries in Indonesia must also be balanced in terms of domestic absorption. "But of course we must also participate in market development. This means that four-wheeled and two-wheeled vehicles must first be available in Indonesia," he added.

Hendi acknowledged that there is still a lot of homework to be completed in encouraging the electric vehicle ecosystem in the country. The reason is, it's not just limited to batteries, there are many other components needed to make the use of electric vehicles successful in the country.

He also admitted that he was wide open if other private companies in the country wanted to be involved in the project to accelerate the electric vehicle ecosystem in Indonesia. Considering that this project covers from upstream to downstream.

"We need partners, including private partners who can provide mining services and then exploration services," he said.

Image source: Harita Group Pulau Obi

Source:  www.cnbcindonesia.com/RI Preparing to Start EVDi Battery Production in 2027