Prospects for Electric Battery Production in Indonesia
Published: January 2024In this issue of the ASEAN Briefing magazine, we provide an overview of Indonesia’s EV battery industry before exploring the various incentives offered by the government. Finally, we discuss the type of business entity foreign investors should use when entering this industry.
Indonesia is looking to take advantage of having the world’s largest deposits of nickel to develop an integrated domestic electric vehicle supply chain. The government has an ambitious target to become the third largest producer of electric batteries in the world by 2027 and produce approximately 140GWh per year of EV battery capacity by 2030.
As such, businesses will find investment opportunities throughout Indonesia’s EV supply chain, whether it is investments in nickel smelters or establishing manufacturing operations for EV batteries and vehicles.
In this issue of the ASEAN Briefing magazine, we provide an overview of Indonesia’s EV battery industry before exploring the various incentives offered by the government. Finally, we discuss the type of business entity foreign investors should use when entering this industry.