Dananatra Has The Opportunity To Encourage Downstreaming, As Long As It Takes Over PT GNI's Shares

Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira. (Photo: Theresia Agatha/VOI)

JAKARTA - The Center of Economic and Law Studies (Celios) revealed that the Anagata Nusantara Resources Investment Management Agency (BPI Danantara) or Danantara Indonesia has a great opportunity to push downstream through the takeover of shares of PT Gunbuster Nickel Industri (PT GNI).

Executive Director of Celios, Bhima Yudhistira said, the takeover of shares or share purchases from PT GNI was due to nickel prices falling by more than 9 percent on an annual basis and the condition of companies in danger of bankruptcy.

"Buying shares on a business basis with PT Gunbuster Nickel Industri (PT GNI), while the price of nickel fell more than 9 percent on an annual basis, then the company is also in danger of bankruptcy," he told VOI, Monday, February 24.

Bhima menyampaikan, PT GNI memiliki 10.000 pekerja, sehingga Danantara bisa bekerja sama dengan investor domestik atau melalui MIND ID untuk akuisisi saham perusahaan tersebut.

According to Bhima, this share acquisition can accelerate downstreaming with better governance, guaranteed worker safety, and connect PT GNI downstreaming with the national downstream industry.

In fact, Bhima said, Danantara can connect GNI with battery factories such as Indonesia Battery Corporation (IBC) or Hyundai LG in Karawang, thus creating a stronger domestic supply chain.

In addition, Bhima also sees the potential to accelerate the development of renewable energy, such as solar plants in PV lakes or floating solar, as well as storage batteries, with the support of funds from the Middle East.

"Next, we can also use the Middle East Fund to accelerate solar plants, especially in lakes or floating solar PV, then storage batteries because Saudi Arabia is also actually interested in driving storage batteries for renewable energy storage," he explained.

In addition, Bhima conveyed that with the help of Danantara it could also reduce the burden on PLN in the Batubara PLTU pension scheme.

"Maybe Danantara can also be used for the Batubara PLTU retirees scheme because so far, if PLN has done its own thing too hard, it can be assisted by this intermediary scheme," he added.

However, Bhima assessed that the first step that could be taken immediately was the takeover of a smelter company that already has a production facility.

"But the lowest hanging fruit that can be done directly takes over the smelter companies whose facilities already exist, so if you want to push downstream," he said.