Indonesia Economy Forum

[Indos]

Indonesia to allow rupiah to strengthen, not targeting any level

• FOREX
• Friday, 10 Jan 2020
  
  3:47 PM MYT
• • 
    

Bank Indonesia (BI) "will give room for the rupiah to strengthen along with market mechanisms. Fundamentally, the rupiah is not yet overvalued," Nanang Hendarsah, who heads the monetary management department, told Reuters in a text message.

JAKARTA: Indonesia's central bank will allow the rupiah to strengthen in line with market movements, but will not target any level, a senior official said on Friday following the currency's rise to an over 18-month high.

Bank Indonesia (BI) "will give room for the rupiah to strengthen along with market mechanisms. Fundamentally, the rupiah is not yet overvalued," Nanang Hendarsah, who heads the monetary management department, told Reuters in a text message.


BI is not targeting any level, but will aim to prevent the rupiah's movements becoming volatile, he added.

The rupiah rose as much as 0.76% on Friday to 13,740 a dollar, leading gains in most Asian currencies on easing U.S.-Iran tensions. The currencies hit their lows this week after a military conflict between the two sides prompted investors to favour safe haven assets.


Governor Perry Warjiyo earlier told reporters that the rupiah's appreciation to around 13,750 a dollar was a reflection of Indonesia's sound economic fundamentals, and the Indonesian currency firmed further after that.

"Our economic fundamentals show that economic growth will be stronger and inflation low while stability is maintained," he said.

Warjiyo also credited a "quite high" supply of U.S. dollar onshore from exporters and capital inflows for the rupiah's strength. A net total of 10.1 trillion rupiah ($734 million) had been invested in Indonesian bonds and equities this year as of Jan. 9, he said.

Friday's gain was the rupiah's biggest intraday rise in over four months and the unit is set to gain about 1.3% for the week, the best weekly performance in an year.

The governor's comments, plus the easing in U.S.-Iran tensions this week only added to investors' enthusiasm for the high-yielding currency, said Khoon Goh, head of Asia research at ANZ.

"It's quite clear from their comments that they are not going to stand in the way of further rupiah appreciation," he said.

"(The bank's) view is still that the rupiah is undervalued, and if you look at the Indonesian macro fundamentals, it's pretty stable...the rupiah offers very attractive yield and that continues to be very attractive for investors."

In 2019, BI cut its main policy rate four times by 100 basis points (bps) and relaxed lending rules in an easing cycle aimed at lifting GDP growth.

Last year's rate cuts rolled back some of the 175 bps that BI had increased its policy rate by in 2018, when it sought to stem capital outflows.

The governor has previously said BI will continue its accommodative policy in 2020. ($1=13,760 rupiah) - Reuters


https://www.thestar.com.my/business...o-strengthen-not-targeting-any-level#cxrecs_s

 

[Nike]

Indonesia to allow rupiah to strengthen, not targeting any level

• FOREX
• Friday, 10 Jan 2020
  
  3:47 PM MYT

Bank Indonesia (BI) "will give room for the rupiah to strengthen along with market mechanisms. Fundamentally, the rupiah is not yet overvalued," Nanang Hendarsah, who heads the monetary management department, told Reuters in a text message.

JAKARTA: Indonesia's central bank will allow the rupiah to strengthen in line with market movements, but will not target any level, a senior official said on Friday following the currency's rise to an over 18-month high.

Bank Indonesia (BI) "will give room for the rupiah to strengthen along with market mechanisms. Fundamentally, the rupiah is not yet overvalued," Nanang Hendarsah, who heads the monetary management department, told Reuters in a text message.


BI is not targeting any level, but will aim to prevent the rupiah's movements becoming volatile, he added.

The rupiah rose as much as 0.76% on Friday to 13,740 a dollar, leading gains in most Asian currencies on easing U.S.-Iran tensions. The currencies hit their lows this week after a military conflict between the two sides prompted investors to favour safe haven assets.


Governor Perry Warjiyo earlier told reporters that the rupiah's appreciation to around 13,750 a dollar was a reflection of Indonesia's sound economic fundamentals, and the Indonesian currency firmed further after that.

"Our economic fundamentals show that economic growth will be stronger and inflation low while stability is maintained," he said.

Warjiyo also credited a "quite high" supply of U.S. dollar onshore from exporters and capital inflows for the rupiah's strength. A net total of 10.1 trillion rupiah ($734 million) had been invested in Indonesian bonds and equities this year as of Jan. 9, he said.

Friday's gain was the rupiah's biggest intraday rise in over four months and the unit is set to gain about 1.3% for the week, the best weekly performance in an year.

The governor's comments, plus the easing in U.S.-Iran tensions this week only added to investors' enthusiasm for the high-yielding currency, said Khoon Goh, head of Asia research at ANZ.

"It's quite clear from their comments that they are not going to stand in the way of further rupiah appreciation," he said.

"(The bank's) view is still that the rupiah is undervalued, and if you look at the Indonesian macro fundamentals, it's pretty stable...the rupiah offers very attractive yield and that continues to be very attractive for investors."

In 2019, BI cut its main policy rate four times by 100 basis points (bps) and relaxed lending rules in an easing cycle aimed at lifting GDP growth.

Last year's rate cuts rolled back some of the 175 bps that BI had increased its policy rate by in 2018, when it sought to stem capital outflows.

The governor has previously said BI will continue its accommodative policy in 2020. ($1=13,760 rupiah) - Reuters


https://www.thestar.com.my/business...o-strengthen-not-targeting-any-level#cxrecs_s

If Rupiah can hit the 12,000 barrier is all the best, we can import more raw material for our manufacturing industry cheaper (like chemical compounds for drugs, iron ingots, oil and gas) and bring more confident for local industry to invest abroad

 

[Indos]

If Rupiah can hit the 12,000 barrier is all the best, we can import more raw material for our manufacturing industry cheaper (like chemical compounds for drugs, iron ingots, oil and gas) and bring more confident for local industry to invest abroad

This strength is caused by much improvement on our trade balance and stable economic growth last year which is predicted by world bank to reach 5.0 percent. If we can continue the positive trend in trade balance then we will likely to post surplus this year that will further strengthen Rupiah.

I dont think we can reach 12.000 per dollar this year since I bet Bank of Indonesia will not allow that to happen. That 12.000 barrier IMO can only be surpassed at best within 3 years time frame, assuming our economy going well with growing trade surplus and 5-5.5 percent growth rate along the years.

Reaching 13.000 Rupiah in the end of this year IMO is quite possible since in the middle of last year Rupiah stand at 14.200 per dollar and in the beginning of this year it get appreciated into 13.760 per dollar, thus around 500 dollar chance.

This good news has made world bank change our economic outlook in 2020 into much more positive in tone. In the middle of last year world bank actually warned Indonesia about possible capital outflow amid deteriorating Rupiah value during that period that can create some kind of financial crisis. Alhamdulillah that prediction is not true.

With stronger Rupiah, it also mean our defense program like KFX/IFX and submarine acquisition get stronger financial backing. Weak Rupiah is actually the main reason of why government try to renegotiate KFX/IFX program by trying to reduce its commitment from 20 % into 15 %. Even there is plan to use barter to finance the program. So with this current economic condition, there is no reason for government to backing down from its previous commitment in KFX/IFX program.

Hopefully finance department also allow defense minister to sign for 3 additional Changbogo contract, as we know finance minister is the one who become the hurdle for the contract signing by saying the loan interest rate is too high. We need this contract to be signed since this project will give PT PAL more capability in building submarine as the last submarine will be fully build in PT PAL facility. PT Barata has also had new factory that can handle submarine steel manufacturing.

 

[Kansel]

INVESTASI
Indonesia jadi target investasi U.S. International Development Finance Corporation
Sabtu, 11 Januari 2020 | 15:25 WIB

• 
  

Reporter: Abdul Basith | Editor: Yoyok

KONTAN.CO.ID - JAKARTA. U.S. International Development Finance Corporation (DFC) menjadikan Indonesia sebagai negara pertama tujuan investasi mereka.

DFC merupakan lembaga pengganti Overseas Private Investment Corporation (OPIC). DFC memiliki dana untuk pembangunan di negara berkembang sebesar US$ 60 miliar atau setara Rp 828 triliun (kurs Rp 13.800)

Baca Juga: Softbank Group siap gelontorkan investasi hingga Rp 1.380 triliun di ibu kota baru

"Ini baru pertama kali dibentuk dan saya langsung berkunjung ke Indonesia," ujar CEO Adam Boehler usai bertemu Jokowi di Istana Merdeka, Jumat (10/1).

DFC sendiri memiliki tujuan untuk mengerek Produk Domestik Bruto (PDB). Oleh karena itu, DFC akan melakukan investasi do sejumlah sektor.

Antara lain adalah energi, infrastruktur dan kesehatan. Seluruh investasi DFC akan didorong untuk menggunakan teknologi tinggi. "Miliaran dolar ya (investasinya), dan nanti kita juga akan menyusun daftar investasi potensial apa saja," terang Adam.

Baca Juga: Softbank tertarik berinvestasi di ibu kota baru, sektor ini yang dibidik

Angka miliaran dolar itu merupakan katalisator yang akan meningkatkan penghasilan. Ditargetkan investasi tersebut akan berkembang hingga empat sampai lima kali lipat.

Sebelumnya juga Jokowi menerima komitmen investasi tersebut. Jokowi bilang pembangunan infrastruktur masih akan berlanjut pada periode kedua kepemimpinannya.

"Pemerintah membutuhkan investasi untuk pengembangan infrastruktur seperti jalan tol, bandara, pelabuhan, infrastruktur energi, dan teknologi digital," jelas Jokowi.

Baca Juga: Industri perbankan diramal masih punya prospek cerah di tahun ini

Oleh karena itu, Indonesia juga memperbaiki iklim investasi. Sehingga nantinya akan lebih bersahabat dengan investasi melalui undang undang omnibus law yang sedang dikerjakan saat ini.

Investasi pembangunan infrastruktur diperlukan oleh Indonesia. Hal itu untuk memperkecil jurang infrastruktur serta meningkatkan daya saing.

https://m.kontan.co.id/news/indones...onal-development-finance-corporation?page=all

Jepang Siapkan US$3 Miliar untuk Investasi di Asean
11 Jan 2020, 01:01 WIB - Oleh: Rustam Agus

/Antara
Bisnis.com, JAKARTA - Pemerintah Jepang menargetkan investasi sebesar tiga miliar dolar AS atau sekitar Rp41 triliun untuk kawasan Perhimpunan Bangsa-bangsa Asia Tenggara (Asean)

“Jepang berkeinginan untuk memobilisasi dana sebesar tiga miliar dolar AS selama tiga tahun dalam periode 2020 hingga 2022,” kata Menteri Luar Negeri Jepang Motegi Toshimitsu saat kunjungan resmi ke Sekretariat Asean di Jakarta, Jumat.

Lebih lanjut ia menjelaskan bahwa dana tersebut bisa disalurkan untuk sektor pemerintahan maupun swasta sebagai dana kerja sama ekonomi yang berlandaskan pada prinsip “mengumpulkan kearifan”.

Prinsip itu merupakan satu dari tiga kebijakan luar negeri baru Jepang terhadap ASEAN, yang dimaksudkan untuk mengakomodasi beragam kearifan yang dimiliki oleh negara-negara anggota ASEAN.

“Antara lain melalui JICA (Badan Kerja Sama Internasional Jepang) yang bersedia memberikan dana penanaman modal dan pinjaman sebesar 1,2 miliar dolar AS,” kata Motegi menambahkan.

Investasi tersebut ditujukan untuk dana penanaman modal dan pinjaman proyek infrastruktur berkualitas tinggi di kawasan ASEAN, antara lain pembangkit listrik, pembangunan perkotaan, transportasi, serta komunikasi dan informasi.

Motegi mencontohkan mass rapid transit atau MRT di Jakarta sebagai kerja sama infrastruktur Indonesia dan Jepang yang bukan sekadar membangun jalur kereta bawah tanah, namun juga mengaktifkan transportasi metropolitan ibu kota terintegrasi.

“Merealisasikan pembenahan infrastruktur berkualitas tinggi tidak cukup dengan dana dan teknologi dari pihak pemberi, tapi memerlukan ide proaktif negara bersangkutan sesuai situasi di lapangan,” ujar Motegi.

Setidaknya ada dua hal lain yang menjadi tujuan investasi tersebut. Pertama, perbaikan akses keuangan dan pemberdayaan perempuan melalui usaha kecil dan menengah serta pembiayaan keuangan mikro.

Dan kedua, promosi investasi hijau untuk keberlanjutan lingkungan sebagai langkah penanganan perubahan iklim global, seperti pembangkit listrik tenaga surya dan proyek-proyek hemat energi lainnya.

https://www.google.com/amp/s/m.bisn...g-siapkan-us3-miliar-untuk-investasi-di-asean

 

[Indos]

It is quite coincident that US DFC comes to Indonesia and promise to invest up to 5 billion USD after what happen in North Natuna sea

Japan Foreign Minister also visited Indonesia

 

[Indos]

 

[Kansel]

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[Nike]

UAE’s Masdar to support development of Indonesia's largest solar power plant

• 
  
  Norman Harsono
  The Jakarta Post
  

Jakarta / Wed, January 8, 2020 / 04:25 pm

A 10-meter long solar photovoltaic (PV) produces electricity for the 90 families that live on Genting Island, one of 27 small islands in Karimunjawa Islands district in Jepara, Central Java. (JP/Stefanno Reinard Sulaiman)
State electricity company PLN’s unit Pembangkitan Jawa Bali (PJB) is looking to begin construction of the $129 million Cirata floating solar power plant in West Java next year with support from Abu Dhabi-based renewables firm Masdar.

The companies will kick off development of the 145 megawatt (MW) Cirata floating solar photovoltaic (PV) power plant next week, when PLN signs a power purchase agreement (PPA) with Masdar, said PLN strategic procurement 1 director Sripeni Inten Cahyani.

“After signing the PPA, we aim to reach a financial close within a year. So by early 2021, we can begin construction,” Sripeni told reporters on Tuesday.

Once fully operational at 145 MW, Cirata will be Indonesia’s largest solar power plant, taking over the title from the existing 15 MW Likupang plant in North Sulawesi. The project will help boost renewable energy development in Indonesia, which is high on the agenda of the Energy and Mineral Resources Ministry.

Indonesia has set a target to have renewable energy account for 23 percent of the country’s energy mix, while the Indonesian Renewable Energy Society (METI) estimates that renewable energy will contribute around 9 percent to the energy mix in 2019.

In its first stage of development, the Cirata plant will have a capacity of 50 MW, Sripeni said. PJB aims to increase the capacity to 145 MW by 2022. She also said PLN would pay 5.8 US cents per kilowatt hour (kwH) of the plant’s electricity.

PLN and Masdar signed a memorandum of understanding (MoU) to develop the Cirata plant in 2017. Initially the plant had an estimated potential of 200 MW and a valuation of $300 million. However, PLN had to revise the MoU after the government abruptly changed a regulation over the appointment of power plant developers.

TOPICS :

• PLN PJB-Pembangkitan-Jawa-Bali solar-power-plant Cirata West-Java renewable-energy electricity UAE

• https://www.thejakartapost.com/news...-of-indonesias-largest-solar-power-plant.html
  
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[Indos]

Nickel Export has been stopped starting January 1. Jokowi has confirmed that.

 

[Indos]

Indonesia, UAE sign business deal worth about $23 billion: Widodo


JAKARTA (Reuters) - Indonesia signed 11 business deals with the United Arab Emirates worth a combined 314.9 trillion rupiah ($23 billion) covering investment in energy and other sectors, Indonesian President Joko Widodo said via his Twitter account on Monday.


FILE PHOTO: Indonesia's President Joko Widodo attends an ASEAN leaders summit with United Nations Secretary-General Antonio Guterres, in Bangkok, Thailand November 3, 2019. REUTERS/Soe Zeya Tun

Widodo witnessed the signing of the deals with Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed over the weekend during an official visit to Abu Dhabi, his tweet said.

President Widodo, who began his second term in office in October, is keen to boost foreign investment to help create jobs and boost growth in Southeast Asia’s biggest economy where economic growth has been stuck at around 5% for several years.

In the petrochemical and gas sectors, Abu Dhabi National Oil Company (ADNOC) signed deals with Indonesian companies PT Pertamina and PT Chandra Asri Petrochemicals (TPIA.JK), UAE state news agency WAM reported.


They included an agreement for ADNOC to supply 528,000 tonnes of liquid petroleum gas (LPG) to Pertamina by the end of 2020, WAM said.

Prior to the visit, Indonesian ministers had outlined some of the deals, including an agreement between Pertamina and ADNOC to upgrade a refinery in Balongan, West Java.

Widodo said five agreements were also signed between the governments. Agreements covered education, health, agriculture and counter-terrorism, Indonesian Foreign Minister Retno Marsudi said in a statement.

Widodo and the crown prince also discussed a plan to establish a sovereign wealth fund, Indonesia’s Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan said.


Japan’s Softbank and the U.S. International Development Finance Corp (IDFC) were also interested in taking part in the fund, Pandjaitan said in a statement.

The UAE would be able to use the fund to invest in the development of Indonesia’s proposed new capital in East Kalimantan province on Borneo Island.

It is also interested in investing in a property development in Aceh province on Indonesia’s Sumatra island, Pandjaitan said.

Reporting by Fransiska Nangoy and Wilda Asmarini, editing by Ed Davies and Richard Pullin

https://www.reuters.com/article/us-...l-worth-about-23-billion-widodo-idUSKBN1ZC08R

 

[Nike]

Largest in Southeast Asia, PLTS Cirata Attracts UAE Investor
Translator:
Mahinda Arkyasa
Editor:
Mahinda Arkyasa
13 January 2020 15:08 WIB

TEMPO.CO, Jakarta - United Arab Emirates (UAE) New Renewable Energy (EBT) company Masdar, will partner with PT PLN (Persero)'s subsidiary business, PT Pembangkit Jawa Bali Investasi (PJBI), to build a floating Solar Power Plant (PLTS) in Cirata Reservoir, West Java. The PLTS is claimed to be the largest PLTS in Southeast Asia.

The investment cooperation was included in an agreement signed by Masdar CEO Mohamed Jameel Al Ramahi, PT PLN (Persero) President Director Zulkifli Zaini, as well as PT Pembangkit Jawa Bali Investasi (PJBI) President Director Gunawan Yudi Hariyanto in Abu Dhabi on Sunday, January 12, 2020. The signing of the agreement was also witnessed by Chief of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, Minister of State Owned Enterprises (BUMN) Erick Thohir, Vice Minister of State Owned Enterprises Budi G. Sadikin, and Minister of Trade Agus Suparmanto, as well as a number of other state officials.

"The investor of this power plant is Masdar, and it has been executed. It [Masdar] is the biggest EBT company in the Gulf Region. Chief of BKPM has said that the government will accelerate investment permits in the future, especially related to the development of the EBT," said BKPM Sectoral Promotion Director, Imam Soejoedi, in a written statement in Jakarta, on Monday, January 13, 2020.

Investment for the PLTS has reached a value of IDR 1.8 trillion, and has set a new record for the biggest solar power plant in the ASEAN region, after the Cadiz Power Plant in the Philippines, with a capacity of 132.5 MW. Chief of BKPM Bahlil Lahadalia, has said that one of the most important reasons to accelerate the investment process is due to EBT's portion in the national energy composition still being limited, only about 10 percent of the national energy composition in total.

In fact, the government is targeting EBT's portion in the national energy composition to reach 23 percent by the year 2025. Furthermore, the current portion of electricity generated by solar power plant in the existing national electricity capacity is only 5 MW.

As much as 16 cooperation between Indonesia and the UAE has been agreed, five of which has been signed between the two countries' governments, and 11 of which has been signed by private businesses in the two countries. This includes a Power Purchase Agreement (PPA) of the 'Floating Solar PV PP 145 MWAC' in Cirata Lake, West Java, between consortium of investors, PT PBJ Investasi (PT PJBI and Masdar) as well as PT PLN (Persero), with a value of USD 129 million.

ANTARA

https://en.tempo.co/read/1294542/largest-in-southeast-asia-plts-cirata-attracts-uae-investor

 

[Indos]

Largest in Southeast Asia, PLTS Cirata Attracts UAE Investor
Translator:
Mahinda Arkyasa
Editor:
Mahinda Arkyasa
13 January 2020 15:08 WIB

TEMPO.CO, Jakarta - United Arab Emirates (UAE) New Renewable Energy (EBT) company Masdar, will partner with PT PLN (Persero)'s subsidiary business, PT Pembangkit Jawa Bali Investasi (PJBI), to build a floating Solar Power Plant (PLTS) in Cirata Reservoir, West Java. The PLTS is claimed to be the largest PLTS in Southeast Asia.

The investment cooperation was included in an agreement signed by Masdar CEO Mohamed Jameel Al Ramahi, PT PLN (Persero) President Director Zulkifli Zaini, as well as PT Pembangkit Jawa Bali Investasi (PJBI) President Director Gunawan Yudi Hariyanto in Abu Dhabi on Sunday, January 12, 2020. The signing of the agreement was also witnessed by Chief of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, Minister of State Owned Enterprises (BUMN) Erick Thohir, Vice Minister of State Owned Enterprises Budi G. Sadikin, and Minister of Trade Agus Suparmanto, as well as a number of other state officials.

"The investor of this power plant is Masdar, and it has been executed. It [Masdar] is the biggest EBT company in the Gulf Region. Chief of BKPM has said that the government will accelerate investment permits in the future, especially related to the development of the EBT," said BKPM Sectoral Promotion Director, Imam Soejoedi, in a written statement in Jakarta, on Monday, January 13, 2020.

Investment for the PLTS has reached a value of IDR 1.8 trillion, and has set a new record for the biggest solar power plant in the ASEAN region, after the Cadiz Power Plant in the Philippines, with a capacity of 132.5 MW. Chief of BKPM Bahlil Lahadalia, has said that one of the most important reasons to accelerate the investment process is due to EBT's portion in the national energy composition still being limited, only about 10 percent of the national energy composition in total.

In fact, the government is targeting EBT's portion in the national energy composition to reach 23 percent by the year 2025. Furthermore, the current portion of electricity generated by solar power plant in the existing national electricity capacity is only 5 MW.

As much as 16 cooperation between Indonesia and the UAE has been agreed, five of which has been signed between the two countries' governments, and 11 of which has been signed by private businesses in the two countries. This includes a Power Purchase Agreement (PPA) of the 'Floating Solar PV PP 145 MWAC' in Cirata Lake, West Java, between consortium of investors, PT PBJ Investasi (PT PJBI and Masdar) as well as PT PLN (Persero), with a value of USD 129 million.

ANTARA

https://en.tempo.co/read/1294542/largest-in-southeast-asia-plts-cirata-attracts-uae-investor

I hope PT LEN Industry will supply the solar panel of this project.

 

[Indos]

Google Translate

Jokowi Serious! Want to Stop Exports of Bauxite, Tin, and Coal

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Photo: PDIP Chairperson Megawati Soekarnoputri at the 47th Anniversary as well as PDIP National Working Meeting (Isal-detikcom)

Jakarta, CNBC Indonesia- In the opening of the PDI-P national work meeting this afternoon, President Joko Widodo (Jokowi) again emphasized the use of natural resource commodities in the country.

He was annoyed to see that the resources owned by the country were often used as a source of money by exporting them raw abroad. Jokowi wants, this can change slowly and not happen again during his leadership.

"Starting this is indeed hard, but if the country does not have a large economic strategy in the framework of designing long-term development, we will become exporters of raw materials," Jokowi said, Friday (01/10/2020).

Indonesia, he said, had already started with nickel and palm oil. Nickel, since January has stopped exporting raw materials because the future strategy will focus on the lithium battery industry for electric cars. "Because Indonesia is the largest producer of nickel," he explained.

Read:
Production Quota Restricted, Coal Issuing Shares Burning Up!

This, he continued, continues to be done so that in the next 2-3 years the lithium battery industry in Indonesia will be created, the price of which can be accepted by the market.

Besides nickel, other commodities will also follow. "One by one we will stop, maybe next year bauxite, tin next year, coal next year, copra will also be stopped," he said.

Jokowi believes that resources such as copra and palm oil can be used as fuel, such as aviation fuel. "It's almost found, if we find, all the planes fuel, we can replace them with coconuts produced by the people."

https://www.cnbcindonesia.com/news/...rius-mau-setop-ekspor-bauksit-timah-batu-bara

 

[Indos]

Indonesia approves environmental study for battery-grade nickel plants: minister

Fransiska Nangoy, Wilda Asmarini

JANUARY 8, 2020 / 4:24 PM / 6 DAYS AGO


JAKARTA (Reuters) - Indonesia has approved environmental impact studies for factories to produce battery-grade nickel chemicals in Morowali, Coordinating Minister of Maritime and Investment Affairs Luhut Pandjaitan said on Wednesday.

The approval will allow investors, such as China’s stainless steel giant Tsingshan Group, to continue the construction of their high-pressure acid leaching plants in Morowali, Central Sulawesi.

There are at least five of these plants being built in Indonesia currently as the government seeks to use its nickel resources to create an integrated industry, including production of nickel chemicals used in car batteries and the building of electronic vehicles.

The country, which is the world’s top nickel ore exporter, has stopped export of unprocessed nickel ore to support this plan.

Two of the plants, representing a combined investment of $2.3 billion, are expected to be built in Morowali by China’s Zhejiang Huayou (603799.SS) and partners and by Chinese battery firm GEM Co Ltd (002340.SZ), Tsingshan Holding Group and partners.

Morowali is already a bustling nickel processing area where Tsingshan produces nickel pig iron and stainless steel.

Pandjaitan said he could not say whether the companies were given the approval to dispose waste into the ocean.

Mining waste management is in the spotlight after red mud spilled into Papua New Guinea’s Basamuk Bay from a nickel plant in Madang in August. That spill resulted from an operational failure, rather than an issue with tailings management.

Fewer than 20 of the world’s 2,500 mines use sea disposal method, and critics say the impact of such marine disposal is poorly understood.

Pandjaitan also said he wants to create more hubs such as Morowali in other parts of the country for other minerals.

“We are preparing to build nearly 11,000 megawatt hydropower plants in Kayan. We want to build an integrate industry somewhere around there,” he said, referring to an area in North Kalimantan province on Borneo island.


“We are preparing around 60,000 hectares of land,” he said, adding that there are plans to include bauxite processing in the Kayan hub.

Indonesia is set to ban all exports of unprocessed mineral in 2022. Asked whether there were plans to move forward an export ban for bauxite, he said: “Everything has its own schedule.”

https://www.reuters.com/article/us-...ry-grade-nickel-plants-minister-idUSKBN1Z7182

 

[Nike]

https://tirto.id/pak-jokowi-tak-ada-sawit-yang-ramah-lingkungan-espB

European fifth column trash like Tirto should be banned