Indonesia and South Korea Deepen EV Battery Partnership

Indonesia and South Korea are deepening a strategic partnership focused on establishing a comprehensive electric vehicle (EV) and battery supply chain within Indonesia. This collaboration aims to move Indonesia beyond its role as a primary nickel producer to a domestic manufacturer of EV components and batteries.

The partnership was highlighted during a state visit by Indonesian President Prabowo Subianto to Seoul, where he held talks with South Korean President Lee Jae Myung. During the visit, President Subianto was conferred the Grand Order of Mugunghwa, the highest honor in South Korea.

Developing the EV Value Chain

Anindya Novyan Bakrie, chair of the Indonesian Chamber of Commerce and Industry (Kadin) and CEO of Bakrie & Brothers, stated that South Korea is a critical partner in Indonesia’s strategy to build a full domestic EV and battery industry. Bakrie noted that Korean companies provide essential technology, process discipline, and end-market access.

The goal is to create a full value-chain ecosystem that encompasses refining, cathodes, battery cells, packs, and recycling. A primary example of this cooperation is HLI Green Power, a 50:50 joint venture between Hyundai Motor Group and LG Energy Solution. This venture launched Indonesia’s first battery cell plant in 2024 with an annual production capacity of 10 gigawatt-hours (GWh).

Further expansion is already underway. LG Chem’s Vice President Dong Choon Kim confirmed that a second phase of the battery cell factory in Karawang, West Java, is currently being constructed, which will add another 20 GWh of capacity.

Climate Goals and Environmental Cooperation

The EV transition is tied to Indonesia’s broader environmental targets. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that cooperation with South Korea in the clean energy and EV sectors is intended to help Indonesia reach its goal of reducing greenhouse gas emissions by 31.89 percent by 2030.

On December 11, 2025, the Global Green Growth Institute (GGGI), supported by Korea’s Ministry of Climate, Energy, and Environment (MCEE), facilitated a capacity-building tour for Indonesian government partners in the Republic of Korea. This initiative is part of the Piloting Electric Vehicle Systems and Developing a Green Transportation Investment Roadmap Project in Bali.

The focus on Bali is driven by the fact that transportation accounts for 43% of total emissions in the province. According to Law Number 59 of 2024 on the National Long-Term Development Plan (RPJPN) 2025-2045, developing the EV ecosystem is a key strategy to support a 70% target by 2045 and promote sustainable economic growth.

Beyond transportation, the two nations have expanded their cooperation to include disaster management. Indonesia and South Korea signed an agreement to strengthen forest fire response, specifically targeting wildfire management in regions such as Riau.

Broadening the Strategic Partnership

The diplomatic and economic ties between the two countries have extended into digital infrastructure and high-level financial agreements. Recent collaborations have focused on establishing stable internet access, artificial intelligence (AI), and data protection.

The scale of the economic cooperation was underscored by the signing of 10 Memoranda of Understanding (MoUs) between Indonesia and South Korea, which are valued at Rp173 trillion.

For Indonesia, Korea’s role is highly strategic over the next decade because Indonesia is not just trying to sell nickel, we are trying to build a complete domestic EV and battery industry.

Anindya Novyan Bakrie, Chair of Kadin

Despite challenges such as a decline in global demand for electric vehicles, Indonesian officials and Korean executives, including those from LG Chem, have acknowledged that significant potential for growth remains within the Indonesian market.