High Initial Investment Costs:One of the primary challenges facing the battery energy storage market in Indonesia is the high initial investment required for deployment. The average cost of installing a battery energy storage system can range from IDR 1 billion to IDR 3 billion (USD 70,000 to USD 210,000) per megawatt-hour.
Indonesia's focus on industrial growth creates a demand for reliable power. BESS can offer backup power, improve power quality, and enable cost savings through peak shaving. The Indonesian government recognizes the importance of energy storage.
• Resource Endowment: Indonesia's nickel reserves combined with policy frameworks create conditions for battery manufacturing sector development and energy storage deployment.
Indonesian battery manufacturing capacity will become operational, reducing import dependence and currency risks. Regulatory frameworks will mature, providing clearer protocols and streamlined approvals. Skills development through training programs and project experience will expand domestic workforce capabilities.
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