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View all search resultsJakarta to issue Indonesia’s first municipal bonds next year
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Construction proceeds on June 29 at the prospective site of Southeast Asia's largest battery industry project, inaugurated by President Prabowo Subianto, in Karawang, West Java. (AFP/Presidential Palace)
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ndonesia must urgently pivot from being a mere supplier of raw materials to investing in research and development (R&D) to secure its position in the global electric vehicle (EV) battery value chain, experts warn.
Timothy Wong, principal of global consultancy Roland Berger and lead for its automotive and mobility practice in Southeast Asia, stated that while Indonesia’s vast nickel reserves, accounting for 42 percent of the world’s total, provide a strong foundation, this advantage is not enough to guarantee long-term strategic relevance.
“Infrastructure bottlenecks, [Indonesia being] ranked 61st globally in logistics performance, reliance on China and ESG risks make it even more urgent to invest now in moving up the value chain rather than remaining only a raw material supplier,” Wong told The Jakarta Post on Wednesday.
His comments come amid rapid global advancements in battery chemistries beyond nickel and lithium, such as scandium-doped sodium-ion, which could alter the landscape of critical minerals.
Wong emphasized that building a domestic R&D ecosystem would take time and hinge on financial resources, workforce readiness and downstream demand. He said strategic partnerships with leading global battery players currently investing in Indonesia are a critical near-term step.
“These collaborations can facilitate technology and knowledge transfer, helping to lay the groundwork for a stronger domestic capability in the sector,” he said, adding that the existing national battery strategy and special economic zones provided a solid policy foundation.
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