The deal was formalized through a memorandum of understanding signed in Jakarta on Tuesday between PT Bangun Palu Sulawesi Tengah, the regional state-owned developer of Palu SEZ, and Singapore-based clean energy investment platform Aslan Energy Capital.
The project will establish an integrated BESS gigafactory and an international-scale LNG hub within the industrial estate in Central Sulawesi, spanning about 40 hectares.
The initial phase is designed to deliver an annual production capacity of 8 gigawatt-hours, with expansion planned to 12-15 GWh in subsequent stages.
"This strategic partnership is a tangible realization of our grand vision to position Palu SEZ as a key hub for the clean energy ecosystem and downstream industrialization in eastern Indonesia,” PT Bangun Palu Sulawesi Tengah President Director Sony Panukma Widianto said on Wednesday.
The facility is expected to strengthen Indonesia’s nickel-based battery supply chain while supporting domestic demand and exports to ASEAN, Australia, and the United States.
“This project is not merely infrastructure investment, but a transformative leap that will deliver long-term impact for energy independence and national industrial competitiveness,” Widianto said.
He said the investment would generate added value from Indonesia’s natural resources and create inclusive economic growth in Central Sulawesi.
The development is projected to directly employ about 1,300 skilled workers and generate more than 3,000 indirect jobs across supporting industries and supply chains.
Aslan Energy Capital Chief Executive Officer Muthu Chezhian said the investment reflected the strategic advantages of Palu in the global energy transition.
“Indonesia plays a crucial role in the future global energy transition roadmap,” Chezhian said while noting the rare combination of nickel access and maritime connectivity.
“Indonesia plays a crucial role in the future global energy transition roadmap. Palu offers a rare combination of direct access to nickel resources, international maritime trade connectivity, and strong government commitment to downstream industrialization,” Chezhian said.
He added that rising demand for energy storage infrastructure was driven by a shift among major global data center operators from conventional backup systems to BESS solutions for greater efficiency and lower emissions.
"Palu SEZ has extraordinary potential to support next-generation data center infrastructure,” he said.
Acting Secretary-General of Indonesia’s National Special Economic Zone Council Rizal Edwin Manansang said the government was optimistic the high-tech energy storage investment would create multiplier effects for regional and national growth.
Palu City Head Hadianto Rasyid said the project would accelerate local economic expansion, attract further industrial investment, and strengthen the city’s position as an emerging manufacturing center in eastern Indonesia.
Palu SEZ is directly integrated with Pantoloan Port and is designed to support natural resource processing, precision manufacturing, logistics, clean energy development, and Indonesia’s broader downstream industrial strategy.
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Translator: Fauzi, Martha Herlinawati Simanjuntak
Editor: Arie Novarina
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