Indonesia’s Investment Coordinating Board Boosts Investment in EV Ecosystem

Feb 2023

Several global and international investors are showing interest in Indonesia’s electric vehicle (EV) battery ecosystem, according to Indonesia’s Investment Coordinating Board (BKPM). The Indonesian government aims to create value through downstreaming, focused on energy and green industry, and not only for nickel resources, but also for other priority sectors such as mineral, coal, oil, natural gas, plantation, marine, fishery, and forestry, with a planned investment value of USD 545.3 billion in 2035. The government’s policy aims to create a more diversified economy by promoting investment in the country’s priority sectors, which is expected to contribute to the development of an EV battery ecosystem in Indonesia.

Indonesia’s Investment Minister/BKPM Head Bahlil Lahadalia has invited investors to bring technology, capital, and market to the country to create added value. The government has implemented policies to promote investment in various sectors, including the electric vehicle battery ecosystem.

He announced that Envision, a global eco-friendly technology company, and Glencore, a Swiss-based mine commodity company, have signed an MoU with national businesses to enter Indonesia’s electric vehicle (EV) battery ecosystem as part of the Indo-Pacific Net Zero Battery-Materials Consortium (INBC).

INBC, initiated by the World Economic Forum (WEF), aims to transition towards net zero and accelerate the construction of battery giga factories in several countries. The move is expected to support Indonesia’s ambition to create added value in its priority sectors, such as the EV battery industry, and to promote investment in the country.

(Sources: BKPM; PWC)

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