Liga Asuransi – Indonesia has once again captured the world’s attention with the presence of global battery giant, Contemporary Amperex Technology Co. Limited (CATL), which is ready to operate its first electric vehicle battery factory in the country. This project is part of a major investment worth USD 6 billion that includes the development of an integrated battery ecosystem—from upstream (nickel processing) to downstream (battery cell production). Located in the Batang Integrated Industrial Estate (KITB) and Morowali, Central Sulawesi, this facility is targeted to begin operations in stages from late 2025 to early 2026.
CATL’s move not only strengthens Indonesia’s position in the global electric vehicle supply chain but also opens up opportunities for battery exports to international markets, particularly Asia, Europe, and the Americas. With its large production capacity and the support of domestic nickel resources, Indonesia has the potential to become a major player in the global battery industry, in line with the government’s ambition to make Indonesia a “Global EV Battery Hub.”
However, the scale and complexity of a project of this magnitude also pose significant risks, ranging from construction and factory operations to supply chain disruptions and even legal liability risks. This is where insurance protection plays a crucial role in maintaining project sustainability and investor confidence.
As an insurance broker with extensive experience in the industrial and energy sectors, L&G Insurance Broker is ready to help local and foreign companies design the right insurance protection — from Construction/Erection All Risks, Property All Risks, to Liability & Business Interruption Insurance — so that strategic projects such asCATLcan run without any obstacles.
Investment Scale & Its Impact on National Exports
CATL’s investment in Indonesia represents a significant milestone in its green industrialization strategy and the strengthening of the global electric vehicle supply chain. With an investment value of US$6 billion (approximately Rp 93 trillion), the project encompasses not only the construction of a battery production facility but also an integrated ecosystem involving a nickel smelter, precursor and cathode plants, and the production of export-ready battery cells.
CATL’s main plant in the Batang Integrated Industrial Estate (KITB) is projected to have an initial production capacity of 10–15 GWh per year, with plans to expand to 30 GWh to meet domestic and international demand. Simultaneously, a nickel downstream project in Morowali, Central Sulawesi, will supply strategic raw materials, ensuring a robust and efficient local supply chain.
From the export side, the presence of factoriesCATLIt is estimated that this will significantly increase the export value of Indonesian battery products. Based on projections from the Ministry of Industry and the Investment Coordinating Board (BKPM), electric vehicle battery exports from Indonesia have the potential to reach USD 9–10 billion per year in the next few years, primarily to markets in Asia, Europe, and the United States. Indonesia has a significant comparative advantage thanks to the world’s largest nickel reserves, making it a key player in the global supply chain.
Furthermore, this project is expected to create tens of thousands of direct and indirect jobs and stimulate the growth of supporting industries such as logistics, component manufacturing, and renewable energy. The resulting ecosystem will have a multiplier effect on the national economy, strengthening Indonesia’s position as a production and export base for strategic, high-tech commodities.
The Role of Insurance Brokers in ProjectsCATL& National Battery Industry
In a major project like the CATL battery plant, the role of an insurance broker is highly strategic. The multi-billion-dollar investment scale, high-tech nature, and the numerous parties involved—from EPC contractors and foreign suppliers to international financial institutions—make risk management challenging.
Here are some important roles of insurance brokers in this context:
1. Develop an Appropriate and Structured Insurance Program
Every industrial project has a unique set of risks. Insurance brokers help conduct a thorough risk assessment and then design a comprehensive insurance program for all phases of the project:
- Pre-construction:contract guarantees and surety bonds.
- Construction:CAR/EAR protection against physical damage, delays, and work accidents.
- Operational: Property All Risks, Machinery Breakdown, Business Interruption, dan liability coverage.
With this design, all potential losses can be systematically minimized.
2. Be a Professional Liaison between Clients and Insurance Companies
Brokers are not just “policy sellers,” but also representatives of the insured’s interests. In large-scale projects, negotiating policy wording, limits, deductibles, and special clauses is crucial. Brokers play an active role in connecting project stakeholders with insurance companies, ensuring that the agreed-upon policy fully meets technical and commercial needs.
3. Supports Fast and Efficient Claim Process
In the event of an incident or loss, the claims process on multinational projects can be extremely complex. Brokers act as client advocates, assisting with the preparation of technical documentation, negotiating with loss adjusters, and expediting claims disbursement so that projects can resume without major disruption.
4. Maintaining Compliance with International Standards
Many projects likeCATLinvolving international financing or joint ventures, they must comply with global insurance standards. Experienced brokers understand these regulations and ensure insurance programs comply with the requirements of both lenders and foreign partners, maintaining the project’s credibility globally.
Conclusion & CTA
CATL’s soon-to-be-operational battery factory in Indonesia is a strategic global project. The facility’s presence will not only strengthen the national electric vehicle battery supply chain but also open up significant export opportunities, create jobs, and support the green economic transformation.
However, projects with multi-billion dollar investments and high complexity like these also carry significant risks—from construction to operational, environmental, and financial. Without sound risk management, a single incident can have a significant impact on production schedules, profitability, and investor confidence.
This is where the role of a professional insurance broker becomes crucial. With experience in handling large industrial projects, brokers help:
- Develop a comprehensive insurance program (CAR/EAR, Property All Risks, Liability, Business Interruption, etc.)
- Be a professional liaison between clients and insurance companies
- Supporting the claims process to be fast and efficient
- Maintaining compliance with international standards
L&G Insurance Broker is ready to be a trusted partner to protect strategic projects such as factories.CATLand other national battery industries. 📞 Contact us at+62811-8507-773for appropriate and comprehensive insurance protection consultation.
