Indonesia is ramping up efforts to build a complete domestic battery ecosystem, aiming to become the world’s second-largest EV and energy storage battery player after China. In January 2026, the Indonesian government signed a framework agreement with a consortium led by Zhejiang Huayou Cobalt, PT Aneka Tambang (Antam), and Indonesia Battery Corporation (IBI) to localize energy storage system production for both EVs and solar applications.
The initiative is directly aligned with Indonesia’s 100GW Solar Program, with the goal of producing “Made in Indonesia” batteries to support national energy security. Additionally, a joint venture between Indonesia Battery and CATL is set to commission a 6.9GWh lithium-ion battery plant in Indonesia by 2026, with production serving both domestic and export markets.
While domestic manufacturing is expanding, the immediate demand for energy storage systems far outpaces local production capacity. This creates a critical window for international storage solution providers to partner with Indonesian companies, supply high-quality integrated systems, and support the country’s solar and storage rollout. The Indonesian Ministry of Energy and Mineral Resources (ESDM) is also finalizing pricing regulations for BESS-integrated hybrid power plants, which will further unlock market demand and standardize the industry.
