Indonesia Expects Rp 100 Trillion Investment in Battery Downstreaming by November, Bahlil Says

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JAKARTA, Investortrust.id — Indonesia is set to receive Rp 100 trillion ($6.2 billion) in new investment by November 2025 to develop domestic cell battery manufacturing capacity, Minister of Energy and Mineral Resources Bahlil Lahadalia said on Tuesday.

The funds will support downstream projects involving Chinese and South Korean investors, aimed at converting nickel raw materials into battery cells. These projects, Bahlil said, align with President Prabowo Subianto’s ambition to build a full electric vehicle (EV) production chain in Indonesia—from upstream mining to final car assembly.

“In November, we expect Rp 100 trillion in investment,” Bahlil said. “We’re moving forward with partners from China and Korea on an $8 billion facility, which will process nickel into cell batteries. President Prabowo even wants us to go further—toward producing electric cars.”

Bahlil underscored the role of domestic processing—or hilirisasi—in building national energy security. “This is about self-sufficiency,” he said. “We’ve been supplying raw materials to other countries for too long. Now it’s time to build full value chains at home.”

He cited the electric vehicle battery ecosystem, which has drawn $20 billion in cumulative investment, as an example of Indonesia’s progress. The country has emerged as the world’s second-largest battery producer after China, he said.

From Resource Supplier to Technology Hub

The minister called for an end to Indonesia’s historical role as a mere exporter of raw materials, drawing a parallel with the Dutch colonial-era practices of the VOC.

“Why are we still sending out raw materials, letting others capture the added value?” he said. “That’s no different from the VOC’s 390 years of exploiting our resources. We can’t allow that cycle to continue.”

To support the downstream push, Bahlil outlined several national initiatives: reactivating idle oil and gas wells, expanding gas infrastructure, and accelerating the shift to renewable energy sources through new technologies and innovation.

The downstream push, he added, means processing natural resources into finished goods entirely within the country. The aim is to boost local industrial capacity, generate jobs, and ensure more of the economic value from Indonesia’s rich mineral wealth stays within the nation.