Jakarta – Electric car prices in Indonesia are poised for further declines inโฃ the coming โyears,potentially accelerating adoption of the vehicles,according toโฃ industry observers. The anticipated drop is linked to โdecreasing battery production costs, a key component of electric vehicle (EV) pricing.
Automotive Observer โYannes Pasaribu predicts battery production costs will fall to around โค$67 USD โper kilowatt-hour (kWh) within 4-5 years, nearing 2030. “it โฃseems like all the fossil fuel vehicle industries, except for petrol head hobbyists, will likelyโ have toโค change businesses, because the production costs will be cheaper, because these batteries cost 20 to 40 percent โof theโ vehicle price,” Pasaribu stated during a presentation at the detikcom Leaders Forum on Wednesday, November 12, 2025.
Indonesia holds a strategic positionโ in the EV โฃbattery supply chain as theโค nation with the world’sโข largest nickel reserves. The Ministry of Energy and โMineral Resources (ESDM) reported โค5.9 billion tonnes of nickel ore reserves and 62.02 million tonnes of nickel metal as of 2024,with 173.6 millionโข tonnes โฃof nickel ore produced throughout the year.
A meaningful advancement in this sector is the establishment of Southeast asia’s largest lithium battery factory, operated byโ PT Industri Batteries Indonesiaโ (IBC) in collaborationโ with brunp and Lygend (CBL), a subsidiary of Contemporary Amperex Technology Co. Limited (CATL). Theโ factory,โ located in Karawang, represents an investment of US$5.9 billion (approximately Rp. โ95.5 โtrillion, based on an exchange rate ofโ rp. 16,192) and was inaugurated by President Prabowoโ Subianto on June 29, โข2025.
“If batteries that cost 20-40 percent can start to be produced (locally), this will accelerate the decline in battery prices, and โขaccelerate the decline in the priceโ of electric cars. Don’t forget that Indonesia will become a hub for the ASEAN region,” Pasaribu added.
Data from the United States Department of Energyโค (DOE) illustrates the trend of falling battery costs, dropping from approximately $1,415 โper kWh in 2008 to $139 per โkWh in 2023 – a roughly 90% decrease over 15 years, adjusted for inflation.