Prabowo to open CATL-IBC battery plant in Karawang, Bahlil says

Top image: Photo: Giorno2, CC BY-SA 4.0, via Wikimedia Commons. The photo shows CATL’s plant in Arnstadt, Germany, not the Karawang site.

President Prabowo Subianto will soon formally open the electric vehicle battery factory built by CATL and Indonesia Battery Corporation (IBC) in Karawang, West Java, according to Bahlil Lahadalia, the coordinating minister for downstreaming and energy transition. No date has been given.

Bahlil made the announcement at the State Palace in Jakarta on Monday 19 October, CNBC Indonesia reported. He framed it as evidence that nickel downstreaming is “going well” (translated from Indonesian), pointing to factories Prabowo recently opened at Weda Bay in North Maluku, the hub from which Indonesia shipped its first EV batteries this month.

Already producing since July

The ceremony will be a formal opening rather than a start-up. As we reported in August, the plant began phased operations earlier this year. IBC chief executive Aditya Farhan Arif told a media event in Jakarta on 14 September that the factory had been running since July, according to CNBC Indonesia. It makes battery cells and packs for EVs, as well as battery energy storage systems (BESS).

Key details, as reported by CNBC Indonesia and summarised by Kayonews:

• Operator: PT Contemporary Amperex Technology Indonesia Battery (CATIB), a joint venture between IBC and CBL, a CATL subsidiary.
• Location: the Artha Industrial Hill and Karawang New Industry City estates.
• Capacity: 6.9 GWh in the first phase, with a plan to reach at least 15 GWh, which IBC says would be enough for around 250,000 EVs.
• Investment: about US$1.2 billion (around Rp21.19 trillion) to build out to 15 GWh.
• Timeline: ground was broken on 29 June 2025, so production began roughly 13 months later.
• Workforce: IBC sent 600 employees to China for training.
• Plans: an 18 MWp solar power plant is planned for 2027, and IBC and CATL are also developing a US$600 million battery materials project in Halmahera.

CNBC Indonesia describes the factory as Indonesia’s second EV battery plant, after Hyundai LG Indonesia (HLI) Green Power, which was opened in July 2024.

Why it matters

Battery supply is becoming central to Indonesia’s EV rules. Carmakers face a 60% local-content (TKDN) requirement from 2027, and the battery is the single most valuable component in an electric car. A domestic cell and pack plant gives brands assembling locally a possible route to higher local content, although neither CNBC Indonesia nor IBC has said which carmakers will buy the Karawang output or which battery chemistry it uses.

The opening also comes as the government finalises a new incentive package, with debate over whether cars using nickel-based batteries should get bigger support than those using lithium iron phosphate (LFP).

What it means for buyers

For now, very little changes on the showroom floor. Locally made cells could in time help brands meet local-content rules and keep tax incentives, which affects prices. But until carmakers confirm they are sourcing from Karawang, buyers should treat the plant as a long-term factor rather than a reason to expect cheaper EVs soon.

Follow-up (4 November 2026): Speaking on 2 November, Bahlil again said the Antam-CATL plant would be inaugurated this month, and claimed Indonesia now has a mine-to-cell battery chain. Read more.

Sources: CNBC Indonesia – Prabowo Segera Resmikan Pabrik Baterai EV Terbesar ke-2 RI (20 Oct 2026); Kayonews – Prabowo Segera Resmikan Pabrik Baterai EV, Investasi Tembus Rp21 Triliun (22 Oct 2026).