The Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) has revealed that the investment potential in the nickel-based battery ecosystem over the next five years could reach USD 20 to USD 25 billion, equivalent to IDR 312 trillion to IDR 390 trillion (with the exchange rate of USD 1 equal to IDR 15,644.05). "For nickel for batteries, there is still room for growth. We estimate that approximately USD 20 billion to USD 25 billion in investments will enter over the next five years," said Septian Hario Seto, Deputy for Investment and Mining Coordination at Kemenko Marves, during a discussion forum in Jakarta on October 9. Seto added that this investment will come from a consortium of Indonesian, Chinese, and European companies. He noted that substantial investment has already been made in the upstream production of nickel, particularly in the stainless steel sector, and that there would not be significant new inflows of investment into nickel, especially in stainless steel, as observed over the past five years. Indonesia has completed the first two phases of nickel ecosystem development, including converting nickel ore into Nickel Pig Iron (NPI) and producing stainless steel. To enhance added value, nickel downstream processing is crucial, focusing on improving midstream and high-tech downstream facilities. Seto emphasized the need to shift the conversation from commodity-based to ecosystem-based development.
In addition to electric vehicle batteries derived from nickel processing, Seto mentioned that the government is also accelerating the production of lithium-based batteries, specifically LFP (Lithium Ferro Phosphate) batteries. The lithium battery ecosystem is supported by the establishment of a lithium battery anode factory in the Kendal Special Economic Zone (KEK) with a capacity of 80,000 tons per year, making it the second largest in the world. Seto stated that through mineral downstreaming programs, including nickel, the sector has absorbed over 200,000 workers, indicating significant employment generation.
