September 3, 2026 | 06:42 pm
TEMPO.CO, Jakarta - South Korea is anticipating incentives and regulatory facilitation for the use of nickel-based batteries in Indonesia’s electric vehicle (EV) ecosystem. Political Section Chief and Counselor of the South Korean Embassy in Indonesia, Uhm Taeho, stated that both governments are currently discussing this policy.
"Incentives and regulatory facilitation for nickel-based batteries will also benefit Indonesia," Taeho said during the Indonesian Next Generation Journalist Network on Korea (IKJN) workshop on August 26, 2026.
During a discussion held by the Foreign Policy Community of Indonesia (FPCI) and the Korea Foundation, Taeho mentioned that nickel batteries are superior because they are easily recyclable and more environmentally friendly. However, he acknowledged that this technology is relatively more expensive than other types of batteries.
South Korea believes that the cost issue can be addressed with government policy support. This partnership goal aligns with South Korea's investment in developing Indonesia’s EV ecosystem, including fleet manufacturing, battery production, and nickel processing.
Taeho stated that Hyundai Motor's investment in Indonesia could serve as an example of Indonesia-South Korea mutualism. Hyundai is not only building EV manufacturing facilities but also developing a battery supply chain in Indonesia through collaboration with LG.
Hyundai Motors is establishing manufacturing facilities in Cikarang, West Java, and recruiting and training the local workforce. Hyundai's presence in Indonesia has also attracted investments from other Korean companies, including EcoPro in the nickel sector. Taeho mentioned that EcoPro has invested over US$1 billion in developing the nickel smelting industry in Indonesia.
"This truly demonstrates how comprehensive our partnership is. They see potential for collaboration in Indonesia," Taeho said.
At the same event, Director of Southeast Asia Division 1 at the South Korean Ministry of Foreign Affairs, Mina Ryu, stated that economic cooperation forms the initial foundation of the relationship between the two countries. Korean investments have evolved from the textile sector to electronics, steel, petrochemicals, biotechnology, and now to EVs and their batteries. "Contributing to the development of an integrated EV ecosystem," Ryu said in a similar agenda.
She presented the Hyundai IONIQ 5 as the Hyundai Group's first locally produced EV in Indonesia. The product launch is accompanied by the development of battery cell production facilities.
The Hyundai Motor Group has invested up to US$3 billion to build an integrated electric fleet ecosystem in Indonesia. Meanwhile, Hyundai Motor Manufacturing Indonesia (HMMI)'s investment in vehicle manufacturing in the Delta Mas industrial area in Cikarang is around US$1.55 billion.
Read: BYD Opens Rp16 Trillion EV Factory in West Java's Subang
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