{"id":60124287,"date":"2026-03-20T19:45:57","date_gmt":"2026-03-20T19:45:57","guid":{"rendered":"https:\/\/dialogue.earth\/?p=60124287"},"modified":"2026-03-25T14:59:16","modified_gmt":"2026-03-25T14:59:16","slug":"beneath-indonesias-big-ev-dreams-loom-local-costs","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/beneath-indonesias-big-ev-dreams-loom-local-costs\/","title":{"rendered":"Beneath Indonesia\u2019s big EV dreams loom local costs"},"content":{"rendered":"\n<p>In July 2024, then president Joko Widodo said Indonesia must \u201cbecome a global player in the EV supply chain\u201d. He was speaking at the <a href=\"https:\/\/en.antaranews.com\/news\/317574\/indonesia-enters-new-chapter-as-global-player-in-ev-ecosystem-jokowi\">inauguration<\/a> of a Hyundai EV and battery factory in Karawang, West Java, where government officials declared the country\u2019s commitment to strengthening its EV production \u201cecosystem\u201d.<\/p>\n\n\n\n<p>Indonesia, with its large supplies of several metals used in EVs \u2013&nbsp;such as nickel, copper and bauxite \u2013&nbsp;has taken several steps towards doing so. But in the background of these ambitions lie concerns about the nickel industry\u2019s impacts on local communities. Experts say that without major changes to the law, local people will continue to suffer from impacts already documented in existing projects.<\/p>\n\n\n\n<p>This is particularly the case in the province of North Maluku, where several key facilities of two major upcoming EV projects will be sited.<\/p>\n\n\n\n<p>One project was inaugurated by current President Prabowo Subianto in June 2025. Dubbed \u201cDragon\u201d, it is an attempt to build a full EV battery supply chain \u2013 from nickel mining to battery manufacturing. Government officials have claimed the USD 5.9 billion undertaking is the largest of its kind in Southeast Asia.<\/p>\n\n\n\n<p>Dragon is a joint venture between two state-owned companies \u2013&nbsp;Aneka Tambang (Antam) and Indonesian Battery Corporation (IBC) \u2013 as well as Chinese battery giant CATL, or more precisely, a subsidiary called CBL. The consortium will build <a href=\"https:\/\/www.esdm.go.id\/en\/media-center\/news-archives\/indonesia-bangun-industri-baterai-listrik-terintegrasi-ini-rincian-proyeknya\">five sub-projects<\/a> in the East Halmahera regency of North Maluku, including facilities for nickel mining, extraction and processing, as well as a battery-recycling factory. It will also build a large-scale EV battery facility in Karawang, which is set to begin commercial operations in late 2026, national news agency Antara <a href=\"https:\/\/en.antaranews.com\/news\/362745\/new-ev-battery-factory-megaproject-brings-us6-bln-investments\">reported<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-cd-article-image aligncenter block--article-image block--article-image--article\" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><div class=\"block--article-image__column\"><div class=\"hide-expand block--article-image__image\"><img class=\"lazy\" data-src=\"https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20240703_Joko-Widodo-inauguration-battery-EV-factory_Karawang_Indonesia_\u00a9-BPMI-Presidential-Secretariat_Rusman.jpg\" data-srcset=\"https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20240703_Joko-Widodo-inauguration-battery-EV-factory_Karawang_Indonesia_\u00a9-BPMI-Presidential-Secretariat_Rusman-768x512.jpg 768w, https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20240703_Joko-Widodo-inauguration-battery-EV-factory_Karawang_Indonesia_\u00a9-BPMI-Presidential-Secretariat_Rusman-1024x683.jpg 1024w, https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20240703_Joko-Widodo-inauguration-battery-EV-factory_Karawang_Indonesia_\u00a9-BPMI-Presidential-Secretariat_Rusman.jpg 2560w\" data-sizes=\"(max-width: 600px) 768px, (max-width: 1024px) 1024px, 2560px\" alt=\"group of people in business wear observing large battery cells\"\/><\/div><div class=\"block--article-image__content\"><div itemprop=\"caption\" class=\"block--article-image__caption\">Then president Joko Widodo at the 2024 inauguration of the Hyundai EV and battery factory in Karawang, West Java. Two other major EV projects currently in the works will have facilities in Karawang and the province of North Maluku (Image \u00a9 BPMI Presidential Secretariat\/Rusman)<\/div><\/div><\/div><meta itemprop=\"contentUrl\" content=\"https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20240703_Joko-Widodo-inauguration-battery-EV-factory_Karawang_Indonesia_\u00a9-BPMI-Presidential-Secretariat_Rusman.jpg\"\/><meta itemprop=\"contentSize\" content=\"2 MB\"\/><meta itemprop=\"height\" content=\"1707\"\/><meta itemprop=\"width\" content=\"2560\"\/><meta itemprop=\"author\"\/><meta itemprop=\"representativeOfPage\" content=\"true\"\/><\/div>\n\n\n\n<p>Another important project is called Titan. This integrated EV supply chain will be operated by Antam, IBC and commodities trading company Daaz Bara Lestari in concert with China\u2019s Zhejiang Huayou Cobalt and EVE Energy. Titan has a slated capacity to produce <a href=\"https:\/\/jakartaglobe.id\/business\/indonesia-targets-h1-2026-groundbreaking-for-titan-battery-project-led-by-huayou-eve#goog_rewarded\">30 gigawatt-hours<\/a> of batteries each year. Its smelter, refining, cathode and extraction facilities will also be built in North Maluku, <a href=\"https:\/\/en.antaranews.com\/news\/402262\/indonesia-targets-2026-groundbreaking-for-huayou-ev-battery-project\">reported<\/a> Antara.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-question-of-ownership\">A question of ownership<\/h2>\n\n\n\n<p>Projects like Dragon and Titan could signal a new era for Indonesia\u2019s EV production, for which progress has so far been slow.<\/p>\n\n\n\n<p>The country <a href=\"https:\/\/www.adlittle.com\/sites\/default\/files\/reports\/ADL_Indonesias_emobility_potential_2023.pdf\">set<\/a> a target to produce 400,000 EVs by 2025 and 600,000 by 2030. But by June 2025, Indonesia had produced just <a href=\"https:\/\/www.cnbcindonesia.com\/news\/20250625171107-4-643947\/produksi-mobil-listrik-ri-masih-seuprit-impor-makin-kuasai-pasar\">25,861<\/a> electric cars since the start of that year.<\/p>\n\n\n\n<p>While EV production has been sluggish, sales in the country are taking off, rising by 152.5% in the first quarter of 2025 compared to the previous year, according to <a href=\"https:\/\/www.pwc.com\/my\/en\/assets\/pdf\/ev-sales-review-q1-2025.pdf\">PwC<\/a>. In the second quarter of 2025, about 24,000 EVs were sold, up from fewer than 150 in 2020, <a href=\"https:\/\/theicct.org\/publication\/electric-vehicle-market-in-indonesia-dec25\/\">noted<\/a> the International Council on Clean Transportation. The majority of those were made by Chinese manufacturers.<\/p>\n\n\n\n<p>For some experts, these growing sales and foreign participation raise questions about ownership of the production technology. \u201cWhen the government said Indonesia wants to be the biggest producer of electric batteries, we have to ask, who owns it?\u201d said Evvy Kartini, founder of the National Battery Research Institute. \u201cWe can say that we are the biggest producer, but all of it is China-owned. [The production] only took place on our land. We sold our nickel-rich soil to them,\u201d Evvy said.<\/p>\n\n\n\n<div class=\"wp-block-cd-article-image aligncenter block--article-image block--article-image--article\" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><div class=\"block--article-image__column\"><div class=\"hide-expand block--article-image__image\"><img class=\"lazy\" data-src=\"https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20220809_Wuling-Air-EVs_factory_Bekasi_West-Java_Indonesia_Xu-Qin_Imago_Alamy-2RRJTGC.jpg\" data-srcset=\"https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20220809_Wuling-Air-EVs_factory_Bekasi_West-Java_Indonesia_Xu-Qin_Imago_Alamy-2RRJTGC-768x512.jpg 768w, https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20220809_Wuling-Air-EVs_factory_Bekasi_West-Java_Indonesia_Xu-Qin_Imago_Alamy-2RRJTGC-1024x683.jpg 1024w, https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20220809_Wuling-Air-EVs_factory_Bekasi_West-Java_Indonesia_Xu-Qin_Imago_Alamy-2RRJTGC.jpg 2560w\" data-sizes=\"(max-width: 600px) 768px, (max-width: 1024px) 1024px, 2560px\" alt=\"row of parked electric vehicles\"\/><\/div><div class=\"block--article-image__content\"><div itemprop=\"caption\" class=\"block--article-image__caption\">Wuling EVs on display outside the Chinese automaker\u2019s production factory in Bekasi, West Java. Experts say growing vehicle sales and increased foreign participation in Indonesia\u2019s EV industry raise questions about ownership of the production technology (Image: Xu Qin \/ Imago \/ Alamy)<\/div><\/div><\/div><meta itemprop=\"contentUrl\" content=\"https:\/\/dialogue.earth\/content\/uploads\/2026\/03\/20220809_Wuling-Air-EVs_factory_Bekasi_West-Java_Indonesia_Xu-Qin_Imago_Alamy-2RRJTGC.jpg\"\/><meta itemprop=\"contentSize\" content=\"2 MB\"\/><meta itemprop=\"height\" content=\"1707\"\/><meta itemprop=\"width\" content=\"2560\"\/><meta itemprop=\"author\"\/><meta itemprop=\"representativeOfPage\" content=\"true\"\/><\/div>\n\n\n\n<p>She added that for Indonesia to build its own EV industry, it is crucial to transfer technology between foreign investors and local players and scale up research nationally. The government needs to support Indonesia\u2019s researchers in developing its raw materials using technology owned by the country to decrease dependency on investors. \u201cWe will lose if we only have the land but not the technology,\u201d she said.<\/p>\n\n\n\n<p>\u201cWe need to question who benefits the most from the investment. What about the local people?\u201d<br><br>She points to the country\u2019s unemployment rate, saying it is crucial that the government invests in developing manpower resources so the EV battery industry can provide employment. \u201cNow there\u2019s still a missing link between the people and the industry.\u201d Indonesia has one of the <a href=\"https:\/\/www.idnfinancials.com\/news\/54292\/bps-indonesia-saw-highest-unemployment-in-asean-job-quality-worsens\">highest rates<\/a> of unemployment in Southeast Asia, with a particularly high youth unemployment rate of <a href=\"https:\/\/asianews.network\/rising-temp-jobs-jobless-youth-strain-indonesias-job-market\/\">17%<\/a> as of October 2025.<\/p>\n\n\n\n<p>Zulfikar Rakhmat is director of the China-Indonesia and Middle East and North Africa Desk at the Center of Economic and Law Studies, a research institution. He says the centre\u2019s economic modelling projects that if the Dragon project is successful, \u201cit will contribute to national gross domestic product [by] around 0.5% to 1%. The country could get USD 3-5 billion per year, which is big\u201d.<\/p>\n\n\n\n<p>But for this to happen, there are things the Indonesian government must improve on, such as environmental standards and regulations, Zulfikar notes. \u201cThere must be a routine audit to make sure that everything is on track, especially on health and environment,\u201d he said.&nbsp; <\/p>\n\n\n\n<p>Zulfikar believes current ESG (environmental, social and governance) regulations are \u201cnot strong enough\u201d. The mineral and coal mining law does <a href=\"https:\/\/www.pwc.com\/id\/en\/energy-utilities-mining\/assets\/mineral-coal-mining-lawno4_2008.pdf\">require<\/a> mining companies to meet environmental and social commitments including restoring areas they mine, as well as devise a plan for development and empowerment of surrounding communities. But according to Zulfikar, the government does not ensure compliance with such laws or sanction investors who break them, <a href=\"https:\/\/dialogue.earth\/en\/pollution\/indonesian-coastal-villages-in-the-dark-over-nickel-pollution\/\">leading to ESG violations<\/a>.<\/p>\n\n\n\n<a class=\"wp-block-cd-related-news alignright block--related-news loading\" data-post-id=\"60108291\"><div class=\"block--related-news__image\"><\/div><div class=\"block--related-news__content\"><span class=\"block--related-news__heading\">Recommended<\/span><span class=\"block--related-news__title\"><\/span><\/div><\/a>\n\n\n\n<p>The energy and mineral resources ministry was approached for comment but did not respond. <\/p>\n\n\n\n<p>However, in August 2025, the secretary of the directorate general of minerals and coal <a href=\"https:\/\/jakartaglobe.id\/special-updates\/indonesian-energy-ministry-strengthens-mining-oversight-vows-sanctions-for-noncompliance#goog_rewarded\">told<\/a> media that businesses failing to carry out \u201ctechnical and environmental obligations, including reclamation and post-mining activities\u201d may face administrative sanctions \u201cranging from written warnings, temporary suspension of activities, to license revocation\u201d.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-cost-of-ambition\">The cost of ambition<\/h2>\n\n\n\n<p>The nickel industry ambitions worry activists and NGOs. They say such development has already come at the expense of local communities, whose needs have been neglected.<\/p>\n\n\n\n<p>According to Zulfikar, there is no public consultation between the government, companies and people when it comes to such projects.<\/p>\n\n\n\n<p>\u201cThe lack of public consultancy is a sign that the same (bad) thing will repeat again,\u201d said Zulfikar. \u201cThere will be a threat [to] the wellbeing of local people, and environmental damage.\u201d <\/p>\n\n\n\n<div class=\"wp-block-cd-accordion block--accordion\"><span class=\"block--accordion__title\">What is Free, Prior and Informed Consent (FPIC)?<\/span><div class=\"block--accordion__content\"><div class=\"block--accordion__content__inner\">\n<p>FPIC is about allowing people to give or withhold consent for projects that may affect them. Its main and original focus is Indigenous peoples but it is also considered best practice for local communities of all kinds. FPIC is enshrined in the UN Declaration on the Rights of Indigenous Peoples, the Convention on Biological Diversity, and the International Labour Organization Convention 169.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<p>In a June 2025 <a href=\"https:\/\/cri.org\/indonesia-prabowo-should-require-protections-at-maluku-battery-project\/\">statement<\/a> before Prabowo inaugurated the Dragon project, the non-profit Climate Rights International (CRI) urged the government to \u201crequire companies to undertake independent environmental assessments and address any gaps, avoid harmful air and water pollution, and ensure meaningful community consultation\u201d. It said that free, prior and informed consent must be obtained from local Indigenous communities.<br><br>Facilities in North Maluku, the province where the Dragon and Titan projects will be establishing key parts of their operations, have been negatively impacting local communities. An October 2025 <a href=\"https:\/\/cri.org\/reports\/does-anyone-care\/#discovery\">report<\/a> by CRI examined the impacts of existing nickel mining and processing projects in the Central and East Halmahera regencies of North Maluku. Central Halmahera is home to a hub of nickel processing called the Indonesia Weda Bay Industrial Park (IWIP). Here CRI has documented various human rights, environmental and climate impacts.<\/p>\n\n\n\n<p>The report found that in the area, \u201cnickel mining and smelting operations are threatening local residents\u2019 right to safe, clean drinking water, as industrial activities and deforestation are polluting the waterways on which local communities depend for their basic needs\u201d.<\/p>\n\n\n\n<div class=\"wp-block-cd-article-image aligncenter block--article-image block--article-image--article\" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><div class=\"block--article-image__column\"><div class=\"hide-expand block--article-image__image\"><img class=\"lazy\" data-src=\"https:\/\/dialogue.earth\/content\/uploads\/2024\/12\/20241203_Indonesia-nickel-mining-Sonof-Kacepo-resident-on-rubble_RabulSawal_ProjectMultatuli.jpg\" data-srcset=\"https:\/\/dialogue.earth\/content\/uploads\/2024\/12\/20241203_Indonesia-nickel-mining-Sonof-Kacepo-resident-on-rubble_RabulSawal_ProjectMultatuli-768x576.jpg 768w, https:\/\/dialogue.earth\/content\/uploads\/2024\/12\/20241203_Indonesia-nickel-mining-Sonof-Kacepo-resident-on-rubble_RabulSawal_ProjectMultatuli-1024x768.jpg 1024w, https:\/\/dialogue.earth\/content\/uploads\/2024\/12\/20241203_Indonesia-nickel-mining-Sonof-Kacepo-resident-on-rubble_RabulSawal_ProjectMultatuli.jpg 1600w\" data-sizes=\"(max-width: 600px) 768px, (max-width: 1024px) 1024px, 1600px\" alt=\"A man stands on a dirt road, surrounded by mountains\"\/><\/div><div class=\"block--article-image__content\"><div itemprop=\"caption\" class=\"block--article-image__caption\">A man stands in front of Kaf Hill on Gebe Island in North Maluku. The hill has suffered severe deforestation and much of its surface has been reduced to rubble from nickel mining excavations (Image: Rabul Sawal \/ Project Multatuli)<\/div><\/div><\/div><meta itemprop=\"contentUrl\" content=\"https:\/\/dialogue.earth\/content\/uploads\/2024\/12\/20241203_Indonesia-nickel-mining-Sonof-Kacepo-resident-on-rubble_RabulSawal_ProjectMultatuli.jpg\"\/><meta itemprop=\"contentSize\" content=\"492 KB\"\/><meta itemprop=\"height\" content=\"1200\"\/><meta itemprop=\"width\" content=\"1600\"\/><meta itemprop=\"author\"\/><meta itemprop=\"representativeOfPage\" content=\"true\"\/><\/div>\n\n\n\n<p>Julfikar Sangaji, disseminator at the NGO Mining Advocacy Network (Jatam) North Halmahera, said that the environmental conditions of Buli, a coastal town in East Halmahera, have deteriorated due to nearby nickel industry operations. \u201cThe river is no longer clean,\u201d he told Dialogue Earth, citing an <a href=\"https:\/\/www.kompas.id\/artikel\/perairan-halmahera-tercemar-logam-berat\">investigation<\/a> by national newspaper Kompas showing that the fish and waters of and surrounding Buli Bay is suspected to have been contaminated by heavy metals.\u00a0<br><br>Locals who fight for their land also face threats. In October 2025, 11 people of the Maba Sangaji Indigenous community in East Halmahera were given <a href=\"https:\/\/cri.org\/indonesia-overturn-convictions-indigenous-rights-activists\/\">sentences<\/a> ranging between two to five months in prison for protesting against nickel mining on their ancestral land.<\/p>\n\n\n\n<p>In the June 2025 statement, CRI\u2019s executive director Brad Adams said the Dragon project \u201cmust avoid replicating IWIP\u2019s reliance on captive coal power plants, which have led to major greenhouse gas emissions that undermine the environmental integrity of supposedly green industrial development\u201d.<\/p>\n\n\n\n<p>He added: \u201cA just transition means centring justice, not just technology or investment. We cannot replace one form of harm with another and call it progress.\u201d<\/p>\n\n\n\n<p>Julfikar took a stronger stand. He said harms to local communities seen with the existing facilities in Central and East Halmahera could happen with future projects, so the government should postpone all such projects.<\/p>\n\n\n\n<p>\u201cWho needs all these projects? We don\u2019t. We don\u2019t need the excessive expansion of the nickel industry,\u201d he noted. \u201cThis feels like an apocalypse looming over our lives.\u201d<\/p>\n\n\n\n<p>Companies developing the Dragon and Titan projects \u2013 Zhejiang Huayou Cobalt, CATL, EVE Energy, Antam, IBC and Daaz Bara Lestari \u2013 were contacted for comment but did not respond.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two upcoming projects aim to push the country\u2019s EV industry forward \u2013 but without changes to the law, experts fear they could perpetuate local harms<\/p>\n","protected":false},"author":50000663,"featured_media":60124310,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[758],"tags":[13444,50029817,20000341],"hashtags":[],"country":[50040717],"class_list":["post-60124287","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-electric-vehicles","tag-supply-chains","tag-water-pollution","country-indonesia"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v26.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Beneath Indonesia\u2019s big EV dreams loom local costs | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Two upcoming projects aim to push the country\u2019s EV industry forward \u2013 but without changes to the law, experts fear they could perpetuate local harms\" \/>\n<meta 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