China helps Indonesia become ASEAN's largest automotive battery production center

In June 2025, Indonesia and ASEAN's largest integrated EV battery production and distribution chain project was officially launched, with President Prabowo attending the groundbreaking ceremony, emphasizing that it was the result of Sino-Indian cooperation.The project is led by Chinese company Ningde Times (CATLThe project is a joint venture of the Ministry of Finance (MOF) and several other Chinese companies, with a total investment of US$5.9 billion, and production bases in the provinces of Karawang, West Java, East Hammarajra and North Maluku. The project will lead to the development of 18 infrastructure projects, including the construction of a multi-purpose port. Experts believe that China is helping Indonesia to become ASEAN's largest production center for new energy vehicle batteries, and that the project will help Indonesia transform from a "raw materials subsidiary" to a "developed industrial country" by increasing the added value of nickel and other raw materials, which is in line with the industrial policy continued by President Prabowo. industrial policy. Despite the disputes between Indonesia and China in the South China Sea and the U.S. attempts to sow discord between the two countries, China remains Indonesia's largest economic and trade partner, and the battery project strengthens bilateral friendship and is important for global political stability. China has accelerated its strategic shift to Asian and African markets as the European Union restricts imports of Chinese electric vehicles. Guangzhou Automobile Group has set up an electric vehicle assembly plant in West Java (its second plant in Southeast Asia); BYD's assembly plant in West Java is expected to go into operation by the end of 2025, and the new cluster will support the development of Chinese new energy vehicles in Asia.