Indonesia is emerging as a key player in China’s electric vehicle (EV) battery industry, with Chinese companies eyeing the country as a production hub to bypass US tariffs, according to Indonesia Battery Corporation (IBC) President Director Toto Nugroho.

Nugroho said that Chinese firms are eager to establish operations in Indonesia to supply EV batteries to global markets, including the US.

This presents an opportunity for Indonesia to attract investments and develop its EV battery industry.

With US tariffs imposing a 10% import duty on Chinese goods and a 25% tariff on lithium-ion and non-lithium-ion battery components, Chinese manufacturers are looking for alternative production sites.

By positioning itself as a strategic EV battery production hub, Indonesia could secure a stronger role in the global EV supply chain while benefiting from increased foreign investment and industrial development.