ASIATODAY.ID, JAKARTA – President Prabowo Subianto has officially approved the continuation of a $9.8 billion electric vehicle (EV) battery downstreaming project, now set to be led by Chinese consortium Huayou in collaboration with CATL (Contemporary Amperex Technology Co. Limited). The project, which was initially managed by LG, marks a strategic shift in Indonesia’s efforts to build a comprehensive and sustainable battery industry.
The approval was granted during a high-level closed-door meeting at Merdeka Palace, Jakarta, May 22, 2025, attended by key cabinet members and top investment officials.
Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that the project has received full backing from President Prabowo and is ready to proceed to the groundbreaking phase.
“The President has approved the project. The Huayou consortium is ready to begin groundbreaking. This is a strategic project that strengthens Indonesia’s position in the global battery supply chain,” Bahlil stated after the meeting.
Bahlil also clarified that reports of LG’s withdrawal were misleading. According to him, the decision to end cooperation with LG was due to prolonged delays.
“It’s not true that LG voluntarily pulled out. I made the decision to cancel the partnership because of the slow progress. We then engaged Huayou as a replacement, and the project is now back on track,” he emphasized.
The project structure ensures that Indonesia’s state-owned enterprises (SOEs) remain the majority stakeholders in the upstream segment, safeguarding national interests over critical mineral resources.
In addition to Huayou, the project is supported by CATL, one of the world’s largest EV battery manufacturers. Minister of Investment and Downstreaming, Rosan Roeslani, who also heads BPI Danantara, stated that the presence of Danantara has resolved previous financing hurdles.
“Financing is no longer an issue. With Danantara onboard, we are fully supporting the project. It offers strong economic returns, creates significant job opportunities, and will have a lasting impact on Indonesia’s economic growth,” Rosan explained.
Green Package: Building a Full-Cycle EV Battery Ecosystem
The Indonesian government is aiming to establish what it calls a “Green Package”—a fully integrated battery ecosystem from mining and refining to battery cell production, all within the country.
“This strategic collaboration with Huayou and CATL will allow Indonesia to control the entire EV value chain. It’s a major step towards energy independence and sustainable green industry,” said Rosan.
Several senior government officials participated in the strategic meeting, including Coordinating Minister for Economic Affairs Airlangga Hartarto, State-Owned Enterprises Minister Erick Thohir, State Secretary Prasetyo Hadi, Cabinet Secretary Teddy Indra Wijaya, Deputy Minister of Industry Faisol Riza, Danantara COO Dony Oskaria. (AT Network)
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