Indonesia has announced a US$7-8 billion partnership to build a large-scale electric vehicle battery ecosystem. The project, called Titan, involves state-owned companies Antam and Industri Baterai Indonesia, together with a Chinese consortium led by Zhejiang Huayou Cobalt.
The goal is to develop a fully integrated battery supply chain, from raw materials to finished batteries. Battery assembly will take place in West Java, while smelters, cathode precursor production and high-pressure acid leach processing will be located in East Halmahera, North Maluku, where Indonesia’s nickel and cobalt mines are based.
The Titan project marks Indonesia’s ambition to become the world’s second-largest integrated battery producer after China. The government will hold a majority stake, likely between 60% and 70%, to ensure profits are directed toward national development and public welfare.
The first phase of this strategy began in 2023 with the so-called “10 giga project,” which is now operational. Titan will expand capacity by 20 gigawatts, supporting Indonesia’s transition to cleaner energy, reducing reliance on imported fuel and promoting electric vehicle adoption.
Originally, the battery project was planned with South Korea’s LG, but delays in execution prompted the government to switch partners to China. Groundbreaking is expected in the first half of 2026, with operations at two sites: West Java for battery manufacturing and East Halmahera for upstream processing.
The project’s scale—covering mining, smelting, precursor production and battery assembly—demonstrates Indonesia’s intent to control its full supply chain rather than exporting raw materials for processing abroad.
Environmental management is critical. Battery production and nickel-cobalt processing generate toxic waste. East Halmahera is ecologically sensitive, and improper handling of chemical waste could contaminate soil, rivers and coastal areas.
China’s consortium brings technical expertise, but history shows that fast-moving industrial projects often prioritize output over environmental safeguards. Indonesia must enforce strict regulations, ensure safe disposal of heavy metals and establish recycling programs to prevent long-term harm to communities.
Labor inclusion is equally important. Indonesia plans to retain majority ownership, but local communities have historically seen limited employment benefits in resource-intensive projects.
Titan should integrate local labor at every stage, from mining to battery assembly. Structured training programs and career pathways will help workers gain high-tech skills. Without these measures, the project risks exporting jobs and expertise abroad, undermining its economic and social objectives.
Integration with Indonesia’s domestic electric vehicle industry is essential. Batteries alone will not transform the market. If cells are exported, Indonesia captures only a fraction of the value, missing the opportunity to support local car and motorcycle manufacturers.
The government should provide incentives for domestic automakers to adopt locally produced batteries and invest in supportive infrastructure, including charging networks and logistics. Without integration, Titan risks becoming a production hub disconnected from Indonesia’s wider economy.
The potential benefits are significant. Titan could reduce imported fuel consumption, lower subsidies on gasoline and accelerate the adoption of electric motorcycles and cars in a country where more than 120 million motorcycles and millions of cars still rely on gasoline.
However, realizing these benefits requires careful oversight of environmental, labor and industrial policies. Poor practices could turn Titan into a cautionary tale rather than a model for sustainable development.
Majority government ownership is an advantage, but it is not enough. Indonesia must ensure strict environmental standards, meaningful local employment, and integration with domestic manufacturing to achieve long-term value. These elements are the levers that transform investment into lasting economic, social and environmental gains.
Titan is more than a battery project. It is a test of Indonesia’s ability to combine ambition with responsibility. The world will watch whether Indonesia can convert its mineral wealth into a sustainable industrial ecosystem while protecting communities and the environment.
China and Indonesia must commit to a project where growth does not come at the cost of health, local jobs or national competitiveness. Indonesia has the resources, the political will and the market opportunity to succeed.
The next step is ensuring Titan produces not just batteries, but a fully integrated, environmentally safe and socially inclusive industrial ecosystem that supports the country’s long-term energy transition and contributes to national prosperity.
Bhima Yudhistira Adhinegara is executive director of the Jakarta-based Center of Economic and Law Studies (CELIOS) independent research institute. Muhammad Zulfikar Rakhmat is director of the institute’s China-Indonesia Desk.