To establish a complete EV industry chain, the Indonesian government is promoting battery recycling development, though progress remains relatively slow. Currently, the country faces multiple challenges including irregular handling of spent batteries, an incomplete regulatory framework, and insufficient recycling infrastructure—leading to high transportation costs and even causing environmental pollution and public health risks.
For Indonesia to become a sustainable EV hub, it must strengthen its regulatory framework, technical capabilities, and business models. A university professor in Indonesia noted that since the EV industry is still in its early stages, battery recycling has yet to achieve economies of scale. Additionally, the government has not clearly defined responsibilities for recycling processes, with spent batteries currently classified only as general hazardous waste.
Recently, Indonesia has intensified its efforts. In late June, a joint venture battery plant between Indonesia’s state-owned battery company and CATL officially broke ground, covering both battery production and recycling, with an expected annual output of 20,000 tons of lithium and nickel salts by 2031. Chinese companies like GEM are also actively participating, planning an $8 billion green industrial park investment in Central Sulawesi and collaborating with universities to establish R&D labs to train local technical talent.
Chinese investors highlight that Indonesia’s abundant nickel resources a