Germany’s BASF and Its Investment Interest in Indonesia’s Battery Industry

 

Saturday, 26 September 2026

 

Germany and Indonesia have been developing stronger economic and clean-energy cooperation. One company that has attracted attention in Indonesia’s electric vehicle industry is BASF, a major German chemical company.

 

BASF has shown interest in Indonesia’s battery supply chain, particularly in the processing of raw materials needed for electric vehicle batteries. This interest is connected to Indonesia’s large nickel resources and its plans to develop more value-added industries.

 

BASF Looks at Nickel and Cobalt

 

BASF’s investment plan in Indonesia has focused on nickel and cobalt processing. These materials are important in the electric vehicle battery supply chain.

 

The Indonesian government has discussed cooperation with BASF to develop a nickel and cobalt processing facility in Central Halmahera, North Maluku. The plan was connected with French mining company Eramet and included the development of a base-metal refinery.

 

This means the plan is not simply about building a battery factory in Jakarta. Instead, it is part of a larger effort to develop battery materials in Indonesia.

 

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Indonesia has some of the world’s largest nickel resources. Because nickel is important for several battery technologies, the country has attracted companies interested in the electric vehicle supply chain.

 

The Indonesian government has also encouraged foreign companies to invest in industries that process raw materials inside the country. The goal is to create more value from Indonesia’s natural resources instead of exporting them only as raw materials.

 

BASF’s interest fits into this wider industrial strategy. In earlier discussions, Indonesian officials encouraged BASF to consider investment across more stages of the electric vehicle battery supply chain.

 

Jakarta Still Has an Important Role

 

Although the planned nickel and cobalt project was associated with North Maluku, Jakarta remains important for investment and business activities. The capital is a major center for government meetings, corporate offices, and investment discussions.

 

BASF also has an established business presence in the wider Jakarta area. Germany Trade & Invest lists BASF operations in Jakarta, Depok, Cikarang, and Merak.

 

So, when discussing BASF and Indonesia’s battery industry, it is useful to separate the company’s business presence in Jakarta from its proposed raw-material processing projects elsewhere in Indonesia.

 

Part of a Wider Germany-Indonesia Partnership

 

The BASF investment interest also fits into broader economic relations between Germany and Indonesia. The two countries have been working together in trade, investment, and sustainable energy.

 

More recently, Germany and Indonesia strengthened cooperation in renewable energy, investment, and the energy transition. Agreements involving German institutions have also supported economic investment and clean-energy projects in Indonesia.

 

Overall, BASF’s interest shows how Indonesia’s nickel resources and growing electric vehicle industry can attract international companies. The planned projects also highlight the importance of developing a complete battery supply chain, from raw materials to more advanced industrial production.