Danantara And Chinese GEM Companies, Agree On Nickel Investment Of IDR 23.2 Trillion

CEO of Danantara Rosan Roeslani. (Photo: ANTARA)

JAKARTA - Danantara Indonesia, through its investment entity, Danantara Investment Management (DIM), has established investment cooperation with GEM Co., Ltd. (GEM), a company from China, which is engaged in green metalurgical and circular economic solutions.

This collaboration was marked by the signing of the Principal Agreement or Head of Agreement (HoA).

This agreement establishes a framework for potential joint investment in the High-Pressure Acid Leaching (HPAL) fusion facility with a plan capacity of 66,000 tons of nickel in mixed hydroxide deposits per year.

The investment value of this project is estimated at around 1.42 billion US dollars or Rp. 23.2 trillion (assuming an exchange rate of Rp. 16,368 per US dollar), and involves collaboration with PT Vale Indonesia Tbk (INDO) and other global partners.

The CEO of Danantara Rosan Roeslani in partnership with GEM is another important milestone in the mission of Danantara Indonesia to catalyze strategic investments that accelerate Indonesia's socio-economic transformation.

"By working with global pioneers in green metalurgy, we are advancing the country's downstream agenda while ensuring sustainability and innovation remain at the forefront," he said in an official statement, Wednesday, August 27.

According to Rosan, the integration of research, green energy, and closed-cycle recycling reflects the type of high-impact project that will create long-term value for Indonesia and Danantara's investment partners.

GEM is widely known for its strong commitment to human resource development.

In line with this commitment, the company has invested 30 million US dollars to jointly establish a state-of-the-art metallurgical research laboratory in collaboration with the Bandung Institute of Technology (ITB), with the aim of strengthening its role.

In the next five years, the initiative at the Indonesia Green Industrial Park (IGIP) aims to create up to 80,000 new jobs, as well as expand the value chain of nickel management including cathode materials, battery cells, high-quality nickel plates, and heavy equipment manufacturing.

For your information, in Shenzhen in 2001, GEM was a company listed on the Shenzhen Stock Exchange and Swiss Stock Exchange, with more than 11,000 employees in China, South Africa, Korea, and Indonesia.

The company is a global pioneer in urban mining and recycling, processing more than 10 percent of China's EV batteries and end-of-life electronics each year, and restoring more than 20 important minerals, including cobalt, nickel, and lithium.

In Indonesia, GEM has made significant investments in nickel-based new energy materials, including the establishment of a high-tech nickel industrial area, a joint innovation laboratory with top universities in Indonesia and China, and scholarship programs that produce master and doctoral graduates in the field of metallurgical.