The Development of EV Ecosystem in

Indonesia; a Downstreaming Program

Presented by
Habibie Razak
Executive Director Persatuan Insinyur Indonesia
Indonesia Country Director - Surbana Jurong Group

17 Nov 2023
Presented at ANSYS PII Webinar – Teknologi Simulasi ANSYS untuk Kendaraan Listrik (EV)
 PII OVERVIEW
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Contents
• World Bank View on Indonesia Industry Downstreaming

• Success Stories of Banning Ore Exports

• Mineral Processing Program

• Case Study: Vale Indonesia Downstreaming Program

• Development of EV Battery and EV Ecosystem Indonesia

• PII & ANSYS SUPPORT IN EV ECOSYSTEM DEVELOPMENT

World Bank View on Industry Downstreaming

Economic Advancement:

Per Capita Income Growth:

Success through Downstreaming:

World Bank View on Industry Downstreaming (Goals)
❑ Future Goals for Economic Growth:
• Per Capita Income Target: Indonesia aims to raise per capita income above US$ 13,845 by
2045.
• Required Economic Growth: Consistent increase in economic growth of 6 to 7% consecutively
❑ Strategies for Increased Growth:
The implementation of structural reform agenda and economic transformation such as:
o Strengthening the quality of human resources,
o Accelerating infrastructure development,
o Improving regulations and bureaucracy,
o Down streaming natural resources,
o Developing high-tech and environmentally friendly manufacturing industries
o Focus on Green energy transition policies including developing carbon markets.

Source: World Bank upgrades Indonesia to a middle income country status thanks to downstream
success, while the IMF urges export ban lift | INSIDER - Indonesia Business Post
Success Story of Banning Nickel Ore Exports

Nickel Ore Export Ban Remarkable Growth Economic Transformation

Source: Downstream Industry and Paradox of Competitiveness |

Kompas.id
 Another Success Story:
Banning Bauxite Ore
Exports

Policy Persistence Current Target Economic Impact

• Despite legal challenges • Ongoing policy aims to • Downstreaming

and defeat in the World stop bauxite ore exports initiatives expected to
Trade Organization, the this year. create substantial added
Indonesia government value for the domestic
• Anticipated boost in
remains committed in economy
exports from Rp 21 trillion
banning commodity
to Rp 62 trillion through
exports.
bauxite ore processing.
Source: Various Sources
Mineral Processing Program

Existing Smelters (Until Feb 2023)

2024 Targets

Investment Requirements

Source: Various sources

 Case Study: Vale Indonesia
Downstreaming Program

Vale’s Commitment to HPAL Plant Project – Bahodopi Smelter Project -

Downstreaming: Southeast Sulawesi: Central Sulawesi:

• Febriany Eddy, President Director • Investment of USD 4.5 billion • Budgeted at Rp 37.5 trillion, the
of PT Vale Indonesia, asserts that (approximately Rp 65.7 trillion) for Bahodopi smelter project in
downstreaming is Vale's DNA. the HPAL Plant in Southeast Central Sulawesi.
• Noteworthy projects attracting
Sulawesi.
investments, totaling up to USD 8.6 • Utilizes Rotary Kiln Electric
billion. • Nickel smelter utilizing High Furnace (RKEF) technology.
Pressure Acid Leach (HPAL)
technology to process nickel into
Mix Hydroxide Precipitate (MHP), a
Source: Various sources key raw material for electric vehicle
battery production.
 Development of EV Battery and
EV Ecosystem Indonesia

Strategic Investment Holding

JV with Strategic Partner
EV Battery EV Ecosystem
Ecosystem
Precursor/
Ecosystem

Mining Refinery Battery Cell 4W Cell to Pack 4W EV OEM

Cathode

Recycling 2W Cell to Pack 2W EV OEM Charging

Infrastructure
10
Shareholder Role

ESS Integrator
Indonesia

ESS OEM

Electricity Supply

5
Battery Provider Demand Creation
Source: PII Engineering Business Summit, EV Ecosystem Development in ASEAN, 2023
PII & ANSYS SUPPORT IN EV ECOSYSTEM DEVELOPMENT

Technical Seminar & Training

 We also cordially invite everyone to join our 41st Conference of
ASEAN Federation of Engineering Organizations (CAFÉO-41), 21 – 23
November, Nusa Dua Bali
Visit us at https://cafeo41-indonesia.com/

Thank You