Jakarta (ANTARA) - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan believes that Indonesia will become one of the top three producers of electric vehicle (EV) batteries in the world by 2027.

"In 2027, we may be one of the top three EV batteries' and EV cars' producer in the world," Pandjaitan stated during the 2023 National Coordination Meeting of Regional Heads that was monitored online from Jakarta, Tuesday.

The minister's belief was also supported by the signing of a cooperation agreement for the development of the EV battery ecosystem between State-Owned Enterprises (SOEs) MIND ID holding and EV battery manufacturers from China Contemporary Amperex Technology Co Limited (CATL) on Monday.

"We are ready to enter a new era of building a lithium battery ecosystem and also an EV car. If everything goes according to plan, we will be able to produce the first lithium battery in 2025," he affirmed.

Pandjaitan said Indonesia's export performance was immediately increased by the downstream industry that was being boosted by the government. He noted that Indonesia's exports of nickel derivatives rose significantly, from around US$8.1 billion to US$33.8 billion in 2022.

"Our exports have increased very well this year, nearly US$11 billion, from the increase in the downstream industry or the downstreaming of only nickel ore. Hence, when we are ready to export lithium batteries, I think the figure will be far bigger," he remarked.

He projected a two-fold increase in the exports of nickel derivatives if the downstream plan to the electric battery industry ecosystem can proceed in the next four to five years.

Earlier, Minister of Investment and Head of BKPM, Bahlil Lahadalia, stated that the Initial Signing Conditional Share Purchase Agreement (CSPA) and Shareholders Agreement (SHA) had been carried out between Antam, a member of MIND ID, and CBL, which is a subsidiary of CATL, on Monday, January 16.

The follow-up progress of this cooperation is in the context of forming a consortium joint venture to develop the EV ecosystem, from upstream to downstream, as part of the green economy transformation program in Indonesia.

"We hope that after the signing of the CSPA, we can push for the downstream commitment agreement process for activities, such as smelters, precursors, cathodes, battery cells, and recycle," Lahadalia stated.

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Translator: Ade Irma J, Resinta S
Editor: Azis Kurmala
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