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The Indonesian State Owned Enterprises Ministry plans to set up a holding company to build a battery industry for the electric vehicles (EV) segment within the first half of the year (H1 2021), according to local media reports.

 

The Indonesian government aims to meet the country’s growing demand for lithium-ion batteries for EVs, including motorcycles, cars, and buses through the new corporation.

 

The new corporation will involve four state enterprises, including aluminum smelter PT Indonesia Asahan Aluminium (MIND ID), mining firm PT Aneka Tambang, oil and gas giant PT Pertamina, and electricity company PT Perusahaan Listrik Negara (PLN).

 

MIND ID and PT Aneka Tambang mine, smelt, and process raw mineral materials, a part of the upstream side, while PT Pertamina and PT PLN will work on the process of producing precursors, cathodes, battery cells, and battery packs to their storage, a part of the downstream side, informed Deputy Minister of State-Owned Enterprises Pahala Mansury.

 

The new battery corporation will also have joint ventures with partners from China, South Korea, the United States, or Europe.

The partners will help to provide capital, technology, and markets for Indonesia’s electric battery industry.

 

The development of Indonesia’s EV battery industry is expected to add $25bn to the national economy in 2027, as per media reports.

Currently, Indonesia is ready to produce electric buses with a capacity of 1,200 units per annum, informed the Ministry of Industry.

 

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