Greening Industrial Value Chain A Case Study of EV in Indonesia

Indonesia is positioning itself as a regional hub for electric vehicle (EV) and battery manufacturing, leveraging its vast nickel reserves and growing automotive industry. Global EV sales exceeded 17 million units in 2024, creating strong demand for batteries and related supply chains. Government incentives have accelerated EV adoption and attracted investment, but regional competitors, particularly Thailand, continue to lead in EV production, exports, and manufacturing capacity. Indonesia’s long-term competitiveness will depend on expanding downstream battery capabilities, improving export performance, and reducing reliance on coal-based energy, which currently undermines the environmental benefits and global market appeal of its EV industry.

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