ASIATODAY.ID, JAKARTA — Indonesia is leveraging its dominant position in the global nickel market to attract a new wave of South Korean investment, offering opportunities across the electric vehicle (EV) battery supply chain as competition intensifies for critical minerals essential to the clean energy transition.
Speaking at the Korea-Indonesia Economic Partnership Forum 2026, Finance Minister Purbaya Yudhi Sadewa invited South Korean companies to combine their advanced manufacturing capabilities with Indonesia’s vast nickel resources to build an integrated EV battery ecosystem.
Indonesia controls an estimated 50–60% of global nickel supply, making the country a pivotal player in the worldwide race to secure critical minerals for electric vehicles and energy storage technologies.
The government said it is accelerating investment through regulatory reforms, streamlined project approvals, and stronger policy certainty to encourage long-term industrial investment rather than exports of raw materials.
As part of the initiative, Jakarta is promoting downstream nickel processing, battery manufacturing, and other value-added industries while encouraging South Korean companies to expand their presence in Indonesia’s growing EV sector.
Indonesia is also offering access to US$1.5 billion in infrastructure financing through the Economic Development Cooperation Fund (EDCF) for priority projects, alongside greater utilization of the Indonesia–Korea Comprehensive Economic Partnership Agreement (IK-CEPA) to strengthen bilateral trade and industrial supply chains.
The investment campaign comes as Indonesia seeks to reinforce its position as a global hub for critical minerals and EV manufacturing, capitalizing on resilient economic growth and strong macroeconomic fundamentals despite persistent global uncertainty.
“We are confident that deeper cooperation with South Korea through strategic infrastructure financing and a sustainable circular battery ecosystem will create significant benefits for both countries,” Finance Minister Purbaya Yudhi Sadewa said on Friday, June 26.
The latest initiative underscores Indonesia’s strategy of transforming its abundant nickel reserves into a high-value industrial ecosystem, positioning the country as one of the world’s most important destinations for investment in the clean energy and electric mobility sectors. (AT Network)
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