Nickel Indonesia Is Predicted To Be Still Attractive And Interesting For Investors

Nickel (Photo: dock. Antara)

JAKARTA - Indonesian nickel will always be in demand and become an attractive commodity. And, of course, attracting investors.

"Nickel is still a story for Indonesia, all kinds of our natural resources are good, so in the future it will still be an attractive and attractive sector for investors," said President Director of PT Mandiri Sekuritas Oki Ramadhana quoting Antara.

As for the size of the company, according to him, it will be greatly influenced by market sizes. When the global nickel market is developing, nickel companies in Indonesia will benefit.

He also emphasized that the company's fundamentals remain an important factor in determining success. Companies with a large and strong scale will be more able to survive and develop.

Fierce debates still color the use of NMC (nickel manganese cobalt) and LFP (lithium ferro phosphate) batteries in the production of electric vehicles.

On the one hand, the NMC battery offers a higher energy density, allowing for a longer distance. On the other hand, LFP batteries excel in terms of stability, security, and production costs.

The increase in the popularity of LFP batteries, which are nickel-free, raises concerns about Indonesia's nickel prospects in the global market considering that Indonesia is the country with the largest nickel reserves in the world.

This concern is reinforced by the fact that several electric vehicles distributed in Indonesia use LFP batteries.

However, Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Investment Rachmat Kaimuddin in Jakarta, Friday, March 1, stated that Indonesian nickel will always be in demand because nickel batteries have higher density and better performance, and are urgently needed in four-season countries, especially during winter.

"Don't worry about the Indonesian nickel industry, regardless of whether we use LFP or not, let alone our small markets, our nickel will always be used, both for battery materials and stainless steel," said Rahmat.