Erick Thohir: Indonesia's Minerba Industry Downstream Policy, Attracts Foreign Investors

Minister of BUMN, Erick Thohir. (Photo: Antara)

JAKARTA - State-Owned Enterprises (BUMN) Minister Erick Thohir said that the focus of the Indonesian government on downstreaming the mineral and coal industry, especially nickel, received a positive response from foreign investment. In fact, there are already several overseas companies that are interested in joining.

The company, namely, Contemporary Amperex Technology Co. Ltd (CATL) from China and LG Chem Ltd from Korea, two of the world's largest electric vehicle (EV) Battery manufacturers, signaled they would join a US $ 20 billion investment project in developing the country's nickel supply chain.

"This is a breath of fresh air. Indonesia's efforts with abundant mining wealth to downstream the mineral and coal industry immediately received a good response from foreign investors. This is proof that Indonesia's policy is correct," said Erick, in Jakarta, Wednesday, October 14.

Indonesia, said Erick, has been known as a producer and exporter of nickel, the main raw material for EV Battery, the world's largest, which controls 27 percent of global market needs.

The BUMN Ministry's policy is to innovate business models in this industry, while simultaneously increasing the Nusantara's abundant nickel value chain . As well as building the lithium battery industry in the country.

"With the presence of foreign investment to support national programs in this industry, I am sure that the sustainability aspect will continue to develop and become stronger in terms of competitiveness to support Indonesia's energy security," he said.

Previously, Mining Industri Indonesia (MIND ID) as the Mining Industry BUMN Holding has completed the purchase transaction of 20 percent of the divestment shares of PT Vale Indonesia Tbk (PT VI) which is a company with the best and largest nickel assets in the world.

The purchase of PT VI shares by MIND ID, he said, was in accordance with the BUMN mandate to manage Indonesia's strategic mineral reserves and also downstream the national mining industry. Especially the domestic nickel nickel. So that it will produce domestic products with economic value up to 4 to 5 times higher than upstream products.

By becoming the winner of the second largest share in PT VI, said Erick, MIND ID will have strategic access to secure the supply of raw materials for Indonesia's downstream nickel industry. Both for downstreaming the nickel industry into stainless steel , as well as into electric vehicle batteries.