Being rich in natural resources, Indonesia used to export raw materials to other countries, which brought only 5% to its GDP in 2019.
Indonesia possesses mineral deposits like tin, nickel, cobalt and bauxite. Some of them are crucial for the production of EV batteries. In order to boost its economy, the country plans to change the focus from exporting raw materials to developing its downstream industries.
“Indonesia always exports raw materials, while it is better to process and consume them through downstream industry or domestically,” said President President Jokowi Widodo.
The implementation of this plan started in 2020, when Indonesia banned the export of nickel. Now the government vows to gradually stop exporting other raw materials too. Indonesia is looking to transform mining and mineral industry for downstreaming.
“The government is working on research regarding lithium-ion battery innovations and it is expected that within two to three years ahead we can produce lithium battery,” the president said.