Indonesia is making significant progress toward renewable energy integration, targeting an ambitious 75 GW addition by 2040. Battery Energy Storage Systems (BESS) are key to stabilizing the grid, managing variable energy sources, and providing power to remote areas. Using battery storage with solar PV can help off-grid regions reduce diesel use, lower emissions, and create a sustainable energy solution.

The growing adoption of electric vehicles (EVs) in Indonesia also further boosts the demand for BESS, which enhances EV charging infrastructure and repurposes EV batteries for secondary use. Moreover, Indonesia’s leadership in nickel reserves, a key material for lithium-ion batteries, positions it as a global player in battery manufacturing. Investments from companies like CATL, LG Energy Solution, and Hyundai are driving the cost-effectiveness and availability of battery solutions, creating a favorable ecosystem for BESS development.

To boost the energy storage industry, the Indonesian government plans to introduce supportive policies such as subsidies, tax incentives, and regulations for grid operators. These measures will speed up the adoption of BESS, help integrate renewable energy projects, and assist Indonesia in reaching its net-zero emissions goal by 2060.