Oversupply Makes Indonesian Nickel Prices Fall, Erick Thohir Opens His Voice

Illustration - Workers show nickel ore that is ready to be processed by ferronickel products. (Between/HO-Antam)

JAKARTA - Commodities related to the electric vehicle industry, namely nickel, are now in a period of decreasing prices. The reason is the flood of supplies or oversupply from the world's leading producers, one of which is Indonesia.

Responding to this, Minister of State-Owned Enterprises (BUMN) Erick Thohir said that based on foreign media reports or foreign studies, Indonesia is said to be very competitive in terms of downstreaming of natural resources (SDA).

"If we look at foreign media, this study from abroad is indeed very competitive in the success of downstreaming over our natural resources. For example, nickel," he said when met at JIExpo Kemayoran, Jakarta, Sunday, February 18.

Erick said that downstreaming is not only limited to nickel commodities but will also be expanded to bauxite. Where the downstreaming of bauxite is driven to green aluminum.

"As Mr. Jokowi said, it is not enough for a strike, we will also encourage bauxite to become a green aluminum in Asahan later," he said.

Erick Juya mentioned the open market or open market of downstream products. He said, because of the open market silence, the competition was getting tighter.

"Well, those are derivatives, but of course the policies that are carried out are open markets. There is a country that loses competition, Indonesia is on the rise, it's okay, Indonesia can't be rich, other countries are rich," he said.

Furthermore, Erick also emphasized that encouraging downstream natural resources does not mean that Indonesia will be closed to investment related to raw materials.

"I make sure that Indonesia's raw materials or raw materials do not close itself, instead we open ourselves up and invite everyone to invest," he said.

"What Indonesia needs is simple economic growth, so as to create prosperity for all Indonesian people and provide the widest possible employment opportunities for the younger generation, that's the point," he continued.