Indonesia wealth fund targets commercial EV ecosystem to support critical minerals industry

Sovereign wealth fund Danantara Indonesia aims to facilitate the development of Indonesia's commercial electric vehicle ecosystem to support the country's critical minerals sector, Danantara Indonesia said Sept. 1.

Danantara Indonesia subsidiary PT Danantara Investment Management has signed a non-binding term sheet with commercial EV manufacturer PT VKTR Teknologi Mobilitas Tbk and VKTR's parent company PT Bakrie & Brothers Tbk. The agreement focuses on advancing an integrated electric mobility ecosystem, which aims to accelerate the adoption of electric buses and trucks across Indonesia, according to Danantara Indonesia.

Danantara Indonesia expects the initiative to deepen the value chain of Indonesia's domestic battery industry and support the country's critical mineral downstreaming agenda, which is one of the fund's priority investment sectors. Indonesia is a major producer of nickel, cobalt and aluminum, which are all used in EV manufacturing.

"We see this collaboration as part of a broader effort to reduce emissions, strengthen the domestic industry, drive downstreaming, and build a more sustainable economic foundation," Pandu Sjahrir, chief investment officer of Danantara Indonesia, said in a statement.

The term sheet serves as an initial framework for future discussions, and comprehensive due diligence will be conducted to ensure that the collaboration would bring value to Indonesia's economy. The realization of investment potential will be subject to the drafting of definitive agreements, Danantara Indonesia said.

Platts, part of S&P Global Energy, assessed nickel sulfate at $4,129/metric ton DDP China on Sept. 1, falling $43/mt from the previous day and down $71 week over week.