The government has moved beyond smelters. Phase two targets electric-vehicle batteries, BESS and advanced manufacturing across 28 core commodities. Heldy Satrya Putera, Deputy for Strategic Investment Downstream, said the shift follows the first wave of domestic smelting and refining capacity. The roadmap sets an investment requirement of US$618.1bn through 2040.
That figure gives a clear measure of Jakarta’s ambition. Indonesia holds among the world’s largest nickel reserves. The government wants to capture more value from that mineral base before products reach global manufacturers.
Foreign capital leads the build-out
Downstream investment reached Rp300.1tn in the first half of 2026, a 6.9% increase year-on-year, according to Investment and Downstreaming Ministry data. Foreign direct investment supplied Rp212.8tn, equivalent to roughly US$13.4bn, or 70.9% of the total. Domestic investors contributed the remaining Rp87.3tn, around US$5.5bn.
The capital mix shapes the industrial story. Foreign investors fund most of the build-out. Indonesian companies retain a smaller but material role. That balance will influence how capability is distributed as phase two accelerates.
Related capital commitments are already moving into execution. Gulf investment in Indonesia has shifted from pledge to power, signalling that large external commitments are no longer simply pipeline. The pattern reinforces investor confidence in the downstream programme.
What does the battery push mean for investors?
Phase two will test whether Indonesia can turn mineral access into competitive industrial platforms. Battery manufacturing demands more than raw feedstock. Projects must secure technology partners, consistent raw-material supply, reliable quality and firm offtake agreements.
Those questions shaped debate at the International Critical Minerals and Metals Summit in Bali. The Investment and Downstreaming Ministry and Fastmarkets hosted the event from 27 to 30 September 2026. Officials and industry participants discussed high-pressure acid leach nickel processing, precursor production and cathode manufacturing. Commercial viability and offtake certainty emerged as the core financing tests.
Indonesia’s battery value chain is moving from concept to installed capacity. These project-level fundamentals will determine whether that capacity can compete in global EV supply chains.
Capacity additions forming an industrial base
Recent plant launches give the strategy physical form. PT Contemporary Amperex Technology Indonesia Battery began phased operations at its Karawang facility in July 2026. The first phase delivers 6.9 GWh of annual capacity, per Indonesian industry reports. A further 8.1 GWh expansion is under consideration; if completed, total output would reach around 15 GWh per year. That positions Karawang as a significant node in regional battery supply chains.
Meanwhile, HLI Green Power — a Hyundai Motor Group and LG Energy Solution joint venture — operates Indonesia’s first EV battery plant, which opened in July 2024. The venture demonstrates that global automotive and battery majors are already active in country.
Execution will matter more than headline capacity. Investors should track precursor and cathode projects, technology partnerships, offtake agreements and BESS demand growth. Policymakers, meanwhile, must sustain foreign investment flows while broadening domestic industrial capability — the combination that converts mineral advantage into bankable supply chains.
Quick answers
Indonesia’s Investment and Downstreaming Ministry has set a target of US$618.1bn in downstream investment through 2040, spanning 28 core commodities including EV batteries and battery energy storage systems.
Downstream investment reached Rp300.1tn in the first half of 2026, a 6.9% year-on-year increase, with foreign direct investment accounting for Rp212.8tn, or 70.9% of the total, according to ministry data.
PT Contemporary Amperex Technology Indonesia Battery launched its first phase at Karawang in July 2026 with 6.9 GWh of annual capacity, while HLI Green Power — a Hyundai Motor Group and LG Energy Solution joint venture — has operated Indonesia’s first EV battery plant since July 2024.
