PT Aceh Green Industri Plans USD 1.3 Billion Investment for Green Battery Recycling Plant in Aceh
Banda Aceh – PT Aceh Green Industri (AGI) has announced plans to invest USD 1.3 billion to build a copper and lithium processing and recovery facility in Aceh. This strategic project, located in Aceh Besar, is expected to create 2,000 direct jobs and significantly reduce carbon emissions by up to 2 million tons annually.
The investment plan was the main agenda of a facilitation meeting held by the Aceh Investment and One-Stop Integrated Services Agency (DPMPTSP) on Tuesday, August 26, 2025. The meeting was attended by government agencies, state-owned enterprises, and AGI’s management team to discuss the acceleration of the project’s licensing process.
AGI President Director, Munawar Khalil, emphasized the company’s full commitment to realizing the project once all required permits are secured. “The company is ready to support the lithium battery processing and recovery project using environmentally friendly technology,” Munawar stated during the meeting.
AGI representative Michael Soh explained that the facility will be a fully eco-friendly recycling plant, focusing on electric vehicle (EV) motor coils and lithium-ion batteries. The development will be carried out in two phases: the first involves building on a 10-hectare site targeted to be operational within 10 months, followed by expansion on an additional 90 hectares.
“This project will utilize AI-driven recovery technology with up to 99% efficiency, along with high-purity material extraction that meets global standards,” Michael added.
Acting Head of DPMPTSP Aceh, Rahmadhani, who chaired the meeting, welcomed the investment plan and reaffirmed the government’s commitment to facilitating the process. He detailed the permits required, including factory establishment, operational licenses, export-import permits, land use approvals, and Environmental Impact Assessment (AMDAL).
During the technical discussions, several agencies provided input. The Industry and Trade Office (Disperindag) stressed the importance of company registration on the SIINAS system and securing green industry certification. PT Pelindo representatives highlighted the need for coordination with Customs and the Port Authority (KSOP) to ensure smooth import logistics. The Transportation Office emphasized the need for a Traffic Impact Analysis (Amdal Lalin) for the project.
As the next step, PT Aceh Green Industri will complete the necessary documents for permit applications. Further coordination will be carried out with Customs, KSOP, and shipping companies, along with follow-up meetings with PT Pembangunan Aceh (PEMA) to finalize project preparations.
