ASIATODAY.ID, JAKARTA — Indonesia is set to mark a major milestone in its industrial transformation as President Prabowo Subianto prepares to inaugurate the long-awaited electric vehicle (EV) battery ecosystem project developed jointly by China’s battery giant CATL and state-owned miner Antam.
The project, one of the largest downstream nickel investments in Southeast Asia, has been completed and is scheduled for official inauguration in late July, Energy and Mineral Resources Minister Bahlil Lahadalia announced following a cabinet meeting with President Prabowo at the Presidential Palace on Monday.
“Indonesia’s EV battery ecosystem project under the cooperation between CATL and Antam has been completed and, God willing, will be inaugurated at the end of July,” Bahlil said.
The announcement represents a significant breakthrough for Indonesia’s ambitious downstream industrialization strategy, which seeks to transform the country from a raw-material exporter into a key global manufacturing hub for electric vehicle batteries and clean energy technologies.
With the world’s largest nickel reserves, Indonesia has emerged as a strategic battleground in the race to secure critical minerals essential for the energy transition. The partnership between Antam and Contemporary Amperex Technology Co. Limited (CATL), the world’s largest EV battery producer, is expected to strengthen Indonesia’s position within the global battery value chain and attract further investment in battery manufacturing, electric vehicles, and renewable energy infrastructure.
Industry analysts view the project as one of the most tangible outcomes of Jakarta’s controversial but increasingly influential mineral downstreaming policy, which banned exports of unprocessed nickel ore and pushed investors toward domestic processing and refining.
The CATL–Antam venture comes as the government intensifies efforts to improve governance across the mining sector. The Ministry of Energy and Mineral Resources has tightened oversight of mining permits, production quotas, and Work Plan and Budget (RKAB) approvals to ensure a stable supply of raw materials for downstream industries.
Director General of Minerals and Coal Tri Winarno emphasized that mining companies must now comply with stricter legal, environmental, technical, and financial requirements before receiving operational approvals.
The stronger regulatory framework is becoming increasingly important as Indonesia’s rapidly expanding nickel-processing industry faces growing concerns over ore availability.
In a sign of mounting pressure on domestic supply, the government recently suggested that smelters operating in the Indonesia Weda Bay Industrial Park (IWIP) could source additional nickel ore from private domestic miners or import supplies from the Philippines if necessary.
Industry estimates indicate that Indonesia may import as much as 25 million tonnes of nickel ore in 2026, reflecting soaring demand from the country’s booming smelting and battery sectors. Imports from the Philippines had already reached approximately 5 million tonnes by May.
Despite these challenges, Jakarta insists that strategic downstream projects such as the CATL–Antam battery complex will remain a top priority. The government argues that recent adjustments to mineral pricing formulas and mining production quotas are intended to balance industrial growth, state revenues, and long-term resource sustainability.
Alongside discussions on downstream industrialization, President Prabowo also reviewed Indonesia’s energy security outlook. According to Bahlil, national energy reserves remain comfortably above the government’s minimum threshold, with average energy stockpiles exceeding 20 days.
The administration additionally evaluated electricity reliability and coal supply for state utility PLN, which consumes around 154 million tonnes of coal annually. Officials said sufficient supplies have been secured while measures are being implemented to improve maintenance and prevent future disruptions.
Bahlil said President Prabowo had instructed ministries and state agencies to take measurable and coordinated steps to ensure uninterrupted energy and power supplies, which are considered essential to sustaining Indonesia’s industrial expansion.
The inauguration of the CATL–Antam project next month is expected to symbolize a new phase in Indonesia’s economic transformation. After decades of exporting raw nickel, Southeast Asia’s largest economy is positioning itself as a major global center for battery production—an ambition that could reshape the international electric vehicle supply chain for years to come. (AT Network)
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