President Prabowo Launches Groundbreaking for EV Battery Ecosystem, Aims to Save 300,000 KL in Fuel Imports

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KARAWANG, WEST JAVA, Investortrust.id – President Prabowo Subianto has officially launched the construction of Indonesia’s first integrated electric vehicle (EV) battery ecosystem in Karawang, West Java, marking a major milestone in the country’s push for energy independence and reduced reliance on imported fuel.

The $5.9 billion project is led by a consortium of PT Aneka Tambang Tbk (Antam), state-owned Indonesia Battery Corporation (IBC), and China-based battery giants CATL, Brunp, and Lygend (CBL). With an initial production capacity of 15 gigawatt hours (GWh), the facility is expected to reduce annual fuel imports by up to 300,000 kiloliters (KL), according to Energy and Mineral Resources Minister Bahlil Lahadalia.

The initiative aligns with the national energy resilience goals outlined in President Prabowo’s Asta Cita roadmap. In 2024, Indonesia's fuel imports stood at 27.7 million KL—one of the highest in the region. The EV battery ecosystem is seen as a key instrument in addressing this energy imbalance.

“With a starting capacity of 15 GWh, we can save up to 300,000 KL in imported fuel annually,” Bahlil said during the inauguration ceremony in Karawang on Sunday, June 29, 2025. “We aim to scale this up to 40 GWh, including batteries for solar power plants.”

Two Hubs, One National Supply Chain

The project spans two strategic locations. The Karawang facility, backed by a $1.2 billion investment, will produce battery cells and is located close to Indonesia’s major automotive manufacturing base. Meanwhile, upstream operations—nickel mining, smelting, precursor, and cathode production—will be based in East Halmahera, North Maluku, with a $4.7 billion investment.

“Battery cell production will be located in Karawang for proximity to car factories, while mining and refining are concentrated in North Maluku,” said Bahlil.

Once fully operational, the ecosystem is projected to support battery needs for up to 300,000 EVs annually. President Prabowo has also instructed the consortium to develop solar energy storage batteries to boost Indonesia’s renewable energy ambitions.

“We’ve secured a commitment from CATL to manufacture all battery types locally, including those for solar panels,” Bahlil added.

Curbing Fuel Import Dependence

Prior to 2012, Indonesia maintained a relatively balanced or surplus trade in oil and gas, largely driven by natural gas exports. However, since 2012, the nation has consistently become a net importer, particularly due to a widening deficit in refined petroleum products.

In 2023, the refined petroleum product trade deficit reached approximately US$22.5 billion, dwarfing the surplus from natural gas (US$3.5 billion) and a notable crude oil deficit of around US$10.2 billion.

This shift underscores Indonesia’s increasing dependence on imported fuels, particularly refined petroleum products, to meet domestic demand—though the country is now investing in electric vehicle manufacturing as part of a broader strategy to reduce fuel imports and reshape its energy consumption structure.