Indonesia is expanding its focus on electric vehicle (EV) battery production, battery energy storage systems (BESS) and high-added-value manufacturing as it enters the second phase of its strategic critical mineral downstreaming initiative.

Deputy for Strategic Investment Downstream at the Investment and Downstreaming Ministry Heldy Satrya Putera said in a statement on Wednesday that the country is moving beyond initial mineral processing towards end-product supply chains.

The government has outlined a downstreaming roadmap covering 28 core commodities, with an estimated investment requirement of US$ 618.1 billion through 2040.

"Currently, our priority is entering phase two, namely expanding development to the electric vehicle battery industry, battery energy storage system, and other high added value manufacturing," Heldy stated, following the initial phase of establishing domestic smelters and refining facilities.

Downstream investment realisation in the first half of 2026 reached IDR 300.1 trillion (US$ 16.86 billion), accounting for 29.7% of total national investment and marking a 6.9% increase year-on-year.

Foreign direct investment (FDI) accounted for IDR 212.8 trillion, or 70.9% of the total, while domestic direct investment reached IDR 87.3 trillion, or 29.1%.

Heldy said the next phase aims to increase market competitiveness, attract long-term capital inflows and increase the capability of national industries to supply global markets.

To support these objectives, the ministry, in partnership with Fastmarkets, is hosting the International Critical Minerals and Metals Summit (ICMMS) in Bali from September 27th to 30th, 2026. The summit brings together government officials, investors, battery material producers, financial institutions and commodity traders.

Discussions at the event focused on the economics of high-pressure acid leach (HPAL) nickel processing, technology integration and the commercial viability of precursor and cathode manufacturing.

The summit also addresses challenges in precursor and cathode development, focusing on raw material availability, technology transfer, product quality, off-take certainty and project viability in the Indonesian battery materials supply chain.