Indonesia is shifting its electric vehicle (EV) strategy to build an integrated supply chain that spans from raw material extraction to end - product manufacturing. By reforming business policies and promoting recycling, the country aims to tackle e - waste, secure critical minerals and lower carbon emissions.
The country has already transitioned toward a circular economy toward a circular economy to address emerging challenges from electric vehicle (EV) battery according to the Director of Strategy and Government of the Value Chain of the Ministry of Invvestment and Processing Industry, Ahmad Faisal Suralaga.
The official stressed that Indonesia has a comprehensive regulation for companies engaged in industry recycling, which also be linked to international regulations and he invited investors to contribute technologies that support the circular economy and complete the supply chain from nickel mining battery recycling facilities.
In the context of an accelerated global transition to renewable energies and electrification, batteries have become critical components for industrial competitiveness, energy security and sustainable development, according to Antara, a news agency that delivers real time information on various events from Indonesia and around the world.
Battery recycling enable Indonesia to strengthen its position in the EV battery production supply chain, achieving complete integration from raw material preparation to finished product manufacturing.
Key features of Indonesia’s push toward a circular EV battery economy include:
• Integrated End - of - Life Management: The government is focusing on the entire lifecycle of EV batteries, moving beyond raw material extraction to include battery repair, repurposing, and recycling.
• Strategic Industry Frameworks: Strategies to manage EV battery waste consist of forming joint ventures with foreign waste management companies, partnering with automakers as third - party managers, and establishing localized EV battery repair shops.
• Policy and Infrastructure Reforms: Initiatives like the Electric Vehicle Battery Recycling and Circular Electronics Management Project drive green transition efforts by reforming business policies, developing integrated investment systems, and addressing e – waste challenges.
• Sustainable Resources Utilization: By treating spent batteries as secondary sources for critical minerals such as cobalt, lithium, and nickel, Indonesia aims to reduce the reliance on primary extractions while strengthening its global position in the EV supply chain.
To support these efforts, the government is introducing reforms designed to simplify investment procedures and align with international sustainability standards.
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