President Joko “Jokowi” Widodo officially inaugurated the anode production facility of PT Indonesia BTR New Energi Materials in Kendal Special Economic Zone (KEK), Central Java, on Wednesday, August 7, 2024, marking a significant milestone in Indonesia’s effort to establish a solid electric vehicle (EV) ecosystem.
PT Indonesia BTR New Energi Materials has expressed investment commitment of Rp3.2 trillion (US$203.9 million) in the facility, with Rp608.5 billion already realized by the second quarter of 2024.
The plant, which took just 10 months to construct following the signing of agreements in Beijing, is set to produce 80,000 tons of anode material annually.
This production capacity is expected to support the manufacturing of up to 1.5 million electric vehicles per year, with the potential to double to 3 million when combined with additional production from related industries.
President Jokowi praised the rapid development of the plant and emphasized its critical role in positioning Indonesia as a major player in the global EV and battery markets.
“This is a massive development. With the addition of 80,000 tons of production in this industry, we will become the largest supplier of both EV batteries and electric vehicles,” he said in his address.
The president also renewed the government’s commitment to building a robust and integrated EV ecosystem by leveraging Indonesia’s rich local resources, including nickel, cobalt, and manganese.
This strategy aims to strengthen Indonesia’s position in the global lithium battery and electric vehicle markets.
Coordinating Minister for the Economy, Airlangga Hartarto, highlighted the economic impact of the Kendal Special Economic Zone, noting that it has contributed to a 42 percent growth in the local economy.
The income per capita in Kendal has reached Rp52 million per year, signaling the region’s growing prosperity.
“The 1,000-hectare land in KEK Kendal is nearly fully utilized, and there are plans to expand by another 1,200 hectares. The next step will be improving the port facilities to ensure efficient logistics. Together with KEK Kendal, the Northern Java Coastal region (Pantura) is becoming a key economic driver on the island,” Airlangga remarked.
Acting Governor Nana Sudjana expressed optimism about the increasing number of investors entering Central Java, which is opening up more employment opportunities in the province.
He affirmed his commitment to continue developing industrial zones, with the goal of enhancing the competitiveness of local industries, attracting further investments, and delivering significant economic benefits both regionally and nationally.
