Indonesia Battery Market - Growth, Trends, and Forecasts (2023-2028)

The Indonesia battery market is expected to register a CAGR of more than 5.6% during the forecast period.

COVID-19 moderately impacted the market in 2020. Currently, the market has reached pre-pandemic levels.

Key Highlights

• Over the medium period, the easy availability of raw materials, an increase in demand for industrial applications, and the automotive sector are expected to drive the Indonesia battery market. In addition, the growing population and increasing sales of consumer electronics, such as mobile phones, laptops, etc., are likely to boost the market growth in the country. Upcoming battery manufacturing facilities and increasing demand for electric vehicles are likely to drive the Indonesia battery market during the forecast period.
• On the other hand, recently, the battery market has seen widespread adoption of lithium-ion batteries due to their declining costs and increasing energy density. However, Indonesia does not have significant lithium deposits to exploit and has to rely on imports, which could restrain the market during the forecast period.
• Indonesia has commitments to reduce CO2 emissions by as much as 29% or around 303 million tons by 2030. As carbon emissions and dependency on fossil energy have become major concerns in Indonesia, the introduction of EVs is seen as a possible solution, which is likely to provide significant opportunities for the battery market.

Indonesia Battery Market Trends

Lithium-ion Battery Technology is Likely to Witness Significant Growth

• The lithium-ion battery segment is expected to grow significantly during the forecast period due to its high energy density, fast recharging capability, and high discharge power. Lithium-ion batteries are the only available technology that meets OEM requirements for vehicle driving range and charging time.
• Indonesia is witnessing strong growth in the demand for 4G-enabled smartphones, mainly due to their availability in the ultra-low-end (
• Indonesia has an abundance and wide variety of renewable energy resources. Therefore, the government has set ambitious targets for renewable energy to meet its targets of greenhouse gas emissions in the energy sector and increase national energy security. The National Energy Policy (KEN) and Plan (RUEN) are planning to generate 23% of the total energy consumption from renewable energy resources by 2025, and the draft of the National Electricity Plan (RUKN) targets to generate 25% of renewable electricity for the power sector by 2025. ​The renewable energy capacity reached 11.15 GW in 2021, with a growth rate of 6.18% from the previous year. Thus, such government initiatives are likely to drive the battery market in the country during the forecast period.
• In November 2022, Indonesia announced the construction of a lithium refinery and an anode material production plant to supplement its nickel-based battery materials sector to establish itself as a center for producing electric vehicles (EVs).
• Thus, lithium-ion battery technology is likely to witness significant growth due to immense benefits over other batteries, increasing investments in setting up manufacturing facilities and the growing renewable sector in the country.

Upcoming Manufacturing Facilities and Increasing Demand for Electric Vehicles are Driving the Market Demand

• Indonesia has seen increased investments in the battery market, majorly in the form of manufacturing facilities, owing to an increase in the number of electric vehicles in the country.
• For instance, in January 2022, Hon Hai and Gogoro signed a Memorandum of Understanding (MoU) on electric vehicle development in Indonesia. Beyond the cooperation on electric vehicle development, the MoU also aims to form a battery supply chain in Indonesia.
• In April 2022, the Contemporary Amperex Technology (CATL) of China announced a preliminary deal to invest in producing electric vehicle (EV) batteries and related raw materials with two state-owned Indonesian enterprises. The three companies intended to build a USD 6 billion integrated battery supply chain, including nickel mining and processing, battery material production, battery manufacturing, and recycling. The nickel processing operations would be based at the FHT Industrial Park in Halmahera, Indonesia's North Maluku Province, with additional operations spread around the country.
• In July 2022, Toyota Motor Corp. of Japan announced an investment of USD 1.80 billion in Indonesia over the next five years to produce electric vehicles.
• The Association of Indonesia Automotive Industries reports that Indonesian electric car sales jumped to over 10,000 vehicles in 2022 from around 600 in 2021. Similarly, 887,205 motor vehicles were sold in Indonesia in 2021, an increase of approximately 532,000 units from 2020.

Indonesia Battery Market Competitor Analysis

The Indonesia battery market is moderately consolidated. Some of the major key players in the market (not in a particular order) include GS Yuasa Corporation, PT Century Batteries Indonesia, the Furukawa Battery Co., Ltd, PT Motobatt Indonesia, and Contemporary Amperex Technology Co. Limited,, among others

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