ASIATODAY.ID, KARAWANG – Indonesia is taking a giant leap forward in its ambition to become a global leader in the electric vehicle (EV) market. On Sunday, June 29, 2025, Indonesian President Prabowo Subianto, accompanied by Minister of Energy and Mineral Resources Bahlil Lahadalia, officially broke ground on the Integrated EV Battery Ecosystem Industry.
Located strategically in the Artha Industrial Hills (AIH) area of Karawang, West Java, this colossal project, valued at $5.9 billion, marks a new chapter for Indonesia’s nickel downstream industry and the clean energy sector.
In his optimistic speech, President Prabowo hailed the groundbreaking as a “strategic historical milestone.” He emphasized that a nation’s development hinges on its ability to process natural resources into valuable materials. The President also highlighted the project as a monumental collaboration with international partners, particularly China, to produce the renewable and environmentally friendly energy that the world desires.
Minister Bahlil Lahadalia was quick to stress the importance of equitable downstreaming, in line with President Prabowo’s directives. He stressed that the benefits of this project should not be limited to investors and the central government.
“This downstreaming project, based on the President’s guidance, must be fair. Fair for local entrepreneurs, fair for the community, and fair for the regional government,” Bahlil stated firmly, underscoring the commitment to ensure that the benefits of this EV battery investment are widely shared.
Bahlil explained that this project is a groundbreaking collaboration between a resource-rich nation (Indonesia) and countries with technological and market prowess (China, specifically CATL).
“We have nickel, manganese, and cobalt, with only lithium being the one material we don’t have. But technology is something we don’t yet comprehensively possess. That’s why we are partnering with our friends from China, especially CATL,” he added.
This Integrated EV Battery Ecosystem Industry is a crucial part of the National Strategic Project (PSN). It consists of six main sub-projects: five are being developed in the Feni Haltim (FHT) area of East Halmahera, North Maluku, and one in Karawang, West Java.
The massive $5.9 billion investment is not just about building a state-of-the-art integrated battery industry; it is also expected to have significant economic and social impacts. The project is projected to create 35,000 direct jobs, stimulate rapid local economic growth, and support the development of 18 multi-purpose port infrastructure projects.
The construction of this EV battery factory in Karawang is set to become a hub of innovation and production, solidifying Indonesia’s position in the global EV supply chain. (AT Network)
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