DBS Indonesia: Nickel and Copper Are Capital, but the EV Ecosystem Needs Investment, Capability, and Collaboration

Bank DBS Indonesia stressed that Indonesia's mineral wealth in nickel and copper is an important foundation for developing the domestic electric vehicle (EV) industry. However, according to Antonius Sehonamin, Director of Institutional Banking Group at Bank DBS Indonesia, natural resource advantages alone are not enough to build a resilient automotive industry. A comprehensive ecosystem is needed, from advanced manufacturing, battery production, and energy storage to recycling.

In a discussion titled "Building a Resilient Automotive Ecosystem Beyond EV Amid Global Supply Chain Shift" held by CNBC Indonesia with DBS Indonesia on Thursday (17/9/2026), Antonius laid out three main pillars that must be met to develop the EV ecosystem: investment, capability, and ecosystem development itself. "The automotive industry cannot be seen as separate segments. It is one interconnected value chain," he said.

Antonius added that banks, including DBS, have a strategic role in supporting that entire value chain. "We want to be a banking partner for industry players, from the upstream sector and vehicle manufacturers (OEMs) to distributors and dealers," he explained. DBS also relies on its regional connectivity to facilitate cross-border transactions for Indonesian automotive industry players seeking to expand.

Echoing Antonius, Ello Hanson, Executive Director, Head of Large Corporates, and ESG Lead, Institutional Banking Group, Bank DBS Indonesia, stressed that the automotive sector is one of DBS's financing focuses, including for EVs. According to Ello, the bank assesses risks and opportunities carefully. "We see Indonesia's large potential, especially in components that will continue to be used, such as tires, electrical systems, AC, audio, and brakes. These components remain relevant for both fossil-fuel and electric vehicles," he said.

DBS's view comes amid a global trend increasingly moving toward electrification. Indonesia, with the world's largest nickel reserves, has the opportunity to become a key player in the battery and electric vehicle supply chain. However, challenges remain, especially in infrastructure, technology, and human resource readiness. The nickel downstreaming pushed by the government has only reached the stage of processing ore into battery raw materials; meanwhile, integrated battery cell and electric vehicle production still requires large investment.

For investors and industry players in Indonesia, this signal from DBS reinforces the narrative that the automotive sector—especially EVs—is not merely a short-term trend, but a structural shift that requires a holistic approach. Banks are also expected not only to provide credit but also to understand global supply chain dynamics and offer flexible financial solutions. DBS's regional connectivity, for example, can serve as a bridge for Indonesian companies seeking partnerships with suppliers or buyers in other countries.

Going forward, the question is how quickly Indonesia can build a truly integrated ecosystem. Will upstream investment be followed by capability development downstream, including battery research and development? Without that, nickel and copper wealth will only become export commodities, not the foundation of a sustainable automotive industry. DBS Indonesia appears to want to ensure that it is not merely a spectator, but a strategic partner in that journey.