Indonesia Battery Industry Market

Battery Energy Storage Solution technology (BESS) will play a critical role in the development of Indonesia’s renewable energy and electric vehicles. Those sectors are some of top priorities from the Indonesian government as Indonesia aims to increase its renewable energy contribution to 23% to the energy mix by 2025, vs. 13% today.  

Since renewable energy resources are usually located far from the major infrastructure or off-grid,there is often an issue with the intermittency of the power it can generate. Currently, Solar power is the largest renewable energy source in Indonesia with a 225 GW potential. Battery technology plays an important role as it overcomes the intermittency issue that the solar power faces as the power needs battery solutions to be able to operate fully. One of the Indonesian government’s current efforts to accelerate the renewable energy development, is through its state-owned electricity company, PLN, which is the planning for the conversion of its 5,200 diesel power plants in 2,130 locations nationwide with 2GW capacity to renewable sources, primarily solar..   In addition, the transmission system in Indonesia is vulnerable to black outs,hence battery technology will be needed to support the stability of the electricity infrastructure. 

Another approach taken by the Indonesian government to reduce the reliance on energy imports, is to accelerate the development of the electric vehicle industry. To support this, the government has been increasingly building infrastructure for battery charging and swaping in Indonesia. Indonesia is targeting 400,000 electric cars in use by 2025 andthe production of 2 million electric motorcycles and vehicles by 2025.

The technologies needed to support Indonesia’s battery industry development will be in high demand globally. Indonesia has banned the export of raw materials from the mining sector since 2019. Through this raw material export ban, Indonesia aims to develop the whole supply chain or ecosystem necessary for the battery industry in Indonesia. This move has  attracted foreign companies from Korea, China, and others to invest in the battery industry in Indonesia. 

For more information, please kindly contact: Commercial Specialist Mr. Mario Simanjuntak (Mario.Simanjuntak@trade.gov)