The Indonesian government has officially launched the construction of an integrated facility for electric vehicle battery production in the Karawang area of West Java on Monday. Estimated at $5.9 billion, the project is being developed in cooperation with China, as reported by the Jakarta Globe.

This initiative marks a pivotal step in Indonesia's efforts to establish itself as a central hub for the electric vehicle industry in Southeast Asia.

The construction is being implemented through a joint venture involving state-owned mining company Aneka Tambang (Antam), the Indonesia Battery Corporation (IBC), and a Chinese consortium led by Contemporary Amperex Technology Co. Limited (CATL), Brunp Recycling, and Lygend Resources.

Indonesian President Prabowo Subianto presided over the groundbreaking ceremony, underscoring the government's commitment to accelerating the growth of the EV sector and enhancing industrial cooperation with China.

The battery production cluster will span an area of 3,000 hectares and is expected to create up to 8,000 jobs. Additionally, the project includes the development of 18 supporting infrastructure facilities, including a universal seaport, designed to enhance logistical capabilities and ensure the smooth operation of the plant.

Commercial operations of the battery manufacturing facility are scheduled to commence by late 2026. Once operational, the plant is expected to play a vital role in transforming Indonesia into a competitive player in the global electric vehicle supply chain.

Indonesia, China bolster ties

On a related note, it is worth noting that earlier in May, Chinese Premier Li Qiang warned on May 25 that the rise of "unilateralism and protectionism" poses a significant threat to the global economic and trade order. His remarks came during an official visit to Indonesia, where he met with President Prabowo Subianto ahead of the ASEAN summit in Kuala Lumpur, which took place on June 11-12. 

"Unilateralism and protectionism are on the rise globally, posing a serious threat to the international economic and trade order," Li said, according to China’s Xinhua news agency, adding that "In the face of these risks, unity and cooperation are the only viable path forward."

The visit underlined the importance of China-Indonesia economic cooperation, particularly as both nations navigate shifting geopolitical and trade dynamics in the Indo-Pacific.

During their talks, Li and Prabowo reiterated their commitment to strengthening bilateral ties, adding that the leaders oversaw the signing of several agreements covering cooperation in economic development, finance, tourism, health, investment, and media.

"China is ready to work with Indonesia and other developing countries to uphold multilateralism and free trade, and advance a multipolar world and inclusive globalisation," Li said.