MIND ID Realizes Downstream Development of Aluminum and Nickel Industry
Monday, 3 October 2022 12:50 WIB
NATIONAL INFO - President Joko Widodo continues to encourage every raw material producing industry in Indonesia to start committing to thinking about the downstreaming of its derivative products. Product downstreaming is believed to be able to strengthen the industrial structure, provide employment, and provide business opportunities in Indonesia.
Mining Industry Indonesia (MIND ID) as a State-Owned Mining Industry Holding together with its members PT Antam Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero), PT Timah Tbk are also committed to realizing the President's message.
President Director of MIND ID, Hendi Prio Santoso said MIND ID has three mandates from the Government. First, it manages reserves and strategic resources. Two, downstream. Three, having market leadership realized through optimization of mineral commodities and business expansion.
One of MIND ID's downstream efforts is realized in the aluminum and nickel business industry, which is currently a key component in the development of the electric vehicle industry. This is in line with the statement of SOE Minister Erick Thohir, that SOEs continue to industrialize the mineral and coal industry to increase industrial value. Moreover, it is supported by the country's abundant mining resources.
"On the other hand, Indonesia is also a producer and exporter of nickel, the main raw material for EV batteries. In fact, we are the world's largest nickel producer supplying 27 percent of global market demand," erick said.
Therefore, the Ministry of SOEs always innovates business models in this industry and improves the value chain of all existing resources. "We have established Indonesia Battery Corporation (IBC), which focuses on developing an end-to-end EV Ecosystem from the exploration & processing of nickel as an electric battery component to EV production and battery recycling," said Erick.
"In addition, we want to attract strategic partners to collaborate and create more value for the industry. With foreign investment in this industry, I believe that we can improve the sustainability of the industry and become more competitive in the global market. The MOU between MIND ID and ARRIVAL is just one of the ways we try to collaborate with strategic partners to create more value."
The electric vehicle industry is currently one of the solutions to reduce increasing global emissions. Electric vehicles are one of the environmentally friendly transportation alternatives, because they do not produce emissions that produce air pollution. This commitment was simultaneously agreed to be one of the three objectives of the G20 Presidency priority agenda in Indonesia, namely (i) the World Health System; (ii) Digital Economy Transformation; (iii) Energy Transition.
"Accelerating the presence of the Electric Vehicle industry in Indonesia is in line with MIND ID's sustainability pathway and also in line with the Sustainable Development Goals (SDGs), especially on the pillars of handling climate change," President Director of MIND ID, Hendi Prio Santoso.
The seriousness of developing this industry was demonstrated by MIND ID by visiting the UK last May and signing a Memorandum of Understanding with Arrival Ltd as a partner to find potential supply solutions, as well as discussing the design and development of electric vehicles. This initiation is part of MIND ID's efforts in exploring the development of commercial electric vehicle
microfactories in Indonesia and Southeast Asia.
In order to implement the spirit of strategic cooperation stated in the Memorandum of Understanding, MIND ID appointed PT Industri Baterai Indonesia ("IBC") to implement it, while conducting a feasibility study together with Arrival Ltd. including Market Study and Project feasibility for electric vehicle business expansion, feasibility of Aluminum supply project and Battery supply for EV business expansion in Asia Pacific region.
The appointment of IBC as the implementer of the Joint Development Agreement was signed on September 30, 2022 during the MIND ID visit represented by Hendi Prio Santoso with Dany Amrul Ichdan as Director of Institutional Relations of MIND ID, as well as the ranks of the Ministry of SOEs.
Based on the results of the feasibility study, MIND ID and Arrival UK Ltd plan to explore the possibility of further collaboration by jointly building Microfactories for Commercial EVs in Indonesia and the Southeast Asia region.
Arrival
microfactory development and investment opportunities in Indonesia support government programs in attracting foreign investors to invest in the country.
"The cooperation between MIND ID and Arrival can contribute to the downstream development of the Aluminum and Nickel industry in Indonesia. Support and synergy are needed to accelerate the realization of the program, one of which is in the form of government policies and convenience for the electric vehicle ecosystem in Indonesia," said Hendi.
Upaya hilirisasi dijalankan melalui kesepakatan kerja sama dengan Arrival Ltd dan penyiapan PT Industri Baterai Indonesia sebagai pelaksana.
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