In brief
Indonesia’s ministry of industry confirmed that, after years of policy development, the nation now operates a complete nickel downstreaming chain. Three battery factories—located in Halmahera, Karawang, and an Antam‑CATL joint venture—serve a domestic EV market while nickel export values have risen sharply.
At the opening of the 2026 Mineral and Coal Convention in Jakarta on Monday, November 2, Indonesia’s Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia announced that the country has built a fully integrated nickel downstreaming industry, covering mining to finished battery cells.
Bahlil, who also serves as the Energy and Mineral Resources Minister, said the milestone reflected the impact of consistent government industrial policies. "Thank God, now Indonesia is one of the countries that has succeeded in building a downstream industry with an integrated car battery ecosystem from mining to battery cells," he noted.
The ministry’s Directorate General of Minerals and Coal reported that Indonesia now operates three major battery production facilities. The first is a plant in the Indonesia Weda Bay Industrial Park in Central Halmahera, North Maluku, the second is the Hyundai LG Indonesia (HLI) Green Power EV battery plant in Karawang, West Java, which began operations in July 2024, and the third is an Antam‑CATL joint‑venture facility that is scheduled to open later this month in Karawang.
President Prabowo Subianto is expected to inaugurate the Antam‑CATL plant in Karawang, marking a formal step in the government’s downstreaming effort. The plant will add processing capacity that keeps nickel value capture within Indonesia.
Export data underscores the scale of the achievement. Official figures show that nickel export value grew from US$3.3 billion in 2017 to nearly US$26 billion by August 2026. Earlier reports had cited a figure of US$40 billion by 2025, while the Directorate General of Minerals and Coal recorded US$25.96 billion in August 2026. The differing numbers illustrate an area for further clarification.
“If we do not build downstreaming and industrialization in our country, the creation of added value will not be optimal,” Bahlil emphasized, pointing to the strategy’s role in retaining processing revenues domestically.
Industry analysts say the new battery plants position Indonesia as a critical player in the global EV supply chain. The domestic battery ecosystem is expected to support a domestic EV market and reduce reliance on imported batteries.
Some observers note that, while the three plants represent significant progress, the broader downstreaming programme requires additional steps, including supply‑chain integration for raw materials, finished battery manufacturing and logistics infrastructure.
The joint venture between Antam and CATL illustrates the partnership model Indonesia is pursuing. The plant’s planned inauguration by the president is intended to signal confidence in the joint‑venture’s operational readiness and its alignment with national industrial policy.
Challenges remain: concerns persist over the environmental impact of mining, the stability of supply chains amid global market volatility, and the need for continued investment in research and development to keep pace with rapidly evolving battery technologies.
At this stage, several uncertainties remain. The official export figures for the latest year differ between sources, leaving the exact increase ambiguous. The exact launch date for the Antam‑CATL plant is still pending, as is confirmation of the plant’s full production capacity. Finally, the long‑term integration of downstream operations—including logistics, recycling, and end‑of‑life management—has yet to be fully realized, leaving the durability of Indonesia’s domestic EV battery ecosystem open to further development.
