Indonesia Aims to Become Third-Largest Lithium Battery Producer by 2027-2028

electric vehicle battery factory in North Maluku
electric vehicle battery factory in North Maluku

The Indonesian government aims to become the world’s third-largest lithium battery producer by 2027-2028. This was announced by Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan.

He said in his Instagram account on Tuesday, March 21, 2023. Minister Luhut revealed this target to Indonesian and Asian businessmen, emphasizing that the country should not be underestimated.

He also explained that there will be an investment of $31.9 billion or approximately IDR 489 trillion ($15,340) for the development of the battery supply chain industry and lithium battery in Indonesia until 2026. Last year, Indonesia attracted $45.6 billion in foreign direct investment, a new record since 2000.

Furthermore, the value of Indonesia’s nickel industry exports reached $33.8 billion in 2022, of which $14.3 billion were generated from iron and steel exports. Minister Luhut attributed this success to President Jokowi’s commitment to the policy of industrialization, which aims to process raw materials within the country for higher added value.

The Minister also told the International Monetary Fund (IMF) during their recent visit to his office that Indonesia was no longer exporting raw materials for free, as it can now export iron and steel instead of nickel ore.

He also stated that the same changes will be made for other minerals such as tin, bauxite, and copper. Minister Luhut criticized developed countries for viewing Indonesia as they did twenty or fifteen years ago, stating that they must recognize the country’s significant changes.

With the ban on nickel exports, Indonesia now has the power to produce green energy, which has long been a dream for the country. Minister Luhut expressed his desire for the Indonesian people to share in this pride and emphasized that Indonesia is not fighting anyone, but rather, it is open and welcoming to other countries to invest and develop mining processing industries, provided that they comply with the country’s regulations.

Minister Luhut concluded by stating that it is every country’s right to become a developed nation, and Indonesia’s obligation is to fight for that right.