Danantara Considers Funding Indonesia’s $5.9 Billion EV Battery Project
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JAKARTA, Investortrust.id — Danantara, Indonesia’s sovereign investment manager, is weighing the possibility of funding the country’s latest electric vehicle (EV) battery project, a $5.9 billion initiative inaugurated by President Prabowo Subianto on Sunday in Karawang, West Java.
Chief Investment Officer Pandu Sjahrir said the firm has not yet committed capital but is evaluating the potential for involvement due to the project's significant value-add and employment impact.
“This is a promising project. It creates a lot of jobs and offers strong commercial potential. We will evaluate it seriously,” Pandu told reporters during the groundbreaking event on Sunday, June 29, 2025.
The Karawang facility is a joint venture between Ningbo Contemporary Brunp Lygend (CBL), a subsidiary of China’s battery giant Contemporary Amperex Technology Co. Ltd (CATL); PT Aneka Tambang Tbk (ANTM); and state-run PT Indonesia Battery Corporation (IBC).
Strategic Role in Energy Transition
Danantara’s Chief Operating Officer Dony Oskaria clarified that any capital injection for the project would be channeled through IBC, which is part of the MIND ID Group, Indonesia’s state mining holding company.
“Funding depends on the capital needs of the joint venture, and that flows through IBC. IBC is the vehicle here, owned by MIND ID, which will disburse the required equity,” Dony said.
The plant is expected to have an initial capacity of 6.9 gigawatt-hours (GWh) annually, with operations beginning by the end of 2026. According to the Ministry of Energy and Mineral Resources (ESDM), the project is projected to generate up to 35,000 jobs and deliver a multiplier effect of $49 billion to the broader economy.
The project is a key part of Indonesia’s strategy to develop an integrated EV ecosystem, reduce fuel imports, and strengthen its downstream mineral industry—leveraging the country’s vast nickel reserves for battery production.