Indonesia Economy Forum

[Whizzack]

Indonesia to Build Electric Vehicle Battery Plant, Production Starting in 2023
July 8, 2021Posted byASEAN BriefingWritten byAyman Falak MedinaReading Time:3 minutes



Indonesia is set to build its first electric vehicle (EV) battery plant and aims to begin production by 2023.
The project is being initiated by Indonesia Battery Corp (IBC) — a holding company consisting of four state-owned enterprises, namely MIND ID, PT Pertamina, PT Perusahaan Listrik Negara, and PT Aneka Tambang Tbk — and a consortium led by South Korea’s LG Group in what will be an initial investment worth US$1.2 billion.
However, the total investment for the IBC-LG project is estimated to reach US$9.8 billion and employ 1,000 workers.
The Kota Deltamas industrial area in Bekasi, West Java province, has been chosen as the facility site, being only two hours from Jakarta by road, and will span some 33 hectares. The facility is expected to have a capacity of 10 Gigawatt hours (GWh) (one gigawatt equals 1 billion watts of electric power), with the batteries manufactured there slated to be used in Hyundai electric vehicles.
Furthermore, a Chinese consortium, which includes China’s Contemporary Amperex Technology (CATL), will invest US$5 billion in a lithium battery plant in Indonesia, with production starting in 2024; both CATL and LG supply the batteries for Tesla’s made-in-China models.
Indonesia wants to increase production to reach a battery capacity of 140 GWh by 2030 from which 50 GWh will be allocated for export. The remainder will be used for Indonesia’s domestic electric vehicle industry — mainly for motorbikes rather than cars.
With Indonesia looking to boost investment in its EV battery sector to US$33 billion by 2033, the country presents ample opportunities for foreign EV manufacturers.
Why should electric vehicle and battery producers move to Indonesia?
Abundant natural resources
A key material in the production of electric vehicle batteries is nickel, and Indonesia has one of the world’s largest reserves for these commodities.
Indonesia accounted for roughly 30 percent of the world’s nickel production and is home to 22 percent of the world’s known nickel reserves, ahead of Australia and Brazil, with some 21 million tons. Indonesia produced 760,000 tons of nickel in 2020.
Another key component in electric vehicle batteries is copper, and Indonesia’s Grasberg mine has the second-largest reserve of copper in the world as well as the world’s largest reserve of gold.
Indonesia wants to take a central position in the EV supply chain
Indonesia wants to move up the EV supply chain from mining the ore to refining it, to manufacturing the batteries and eventually manufacturing the vehicles. And since the country controls the raw input, it is finding that it has a lot of leverage.
A decade ago, Indonesian nickel exports reached 64 million tons in 2013, but the following year, outgoing President Susilo Bambang Yudhoyono banned the exports of the commodity, with the goal of developing the downstream industry by forcing nickel companies to build smelters and refine the ore in Indonesia. The ban was only implemented in January 2020 and the government also announced a ban on unprocessed copper concentrate and bauxite by 2023.
Demand for nickel has continued to increase, thanks to EV batteries, and Indonesia saw over US$6 billion in foreign investments for the construction of nickel smelters and other downstream processing activities.
Furthermore, Indonesia is also focusing on developing two nickel-based battery blends, consisting of nickel-cobalt-manganese and lithium-cobalt-nickel-aluminum, which are considered two of the most popular blends used in EV lithium-ion batteries.
Available incentives
In 2019, Indonesia’s government introduced a variety of incentives for EV manufacturers, transport companies, as well as consumers. This includes import tariff reductions for machinery and materials used for EV production, and tax holiday incentives for up to 10 years for EV manufacturers that make at least 5 trillion rupiah (US$346 million) in investments in the country.
Divestment of shares still required for foreign investors
Mining activities are not included in Indonesia’s latest Positive Investment List and are technically open to 100 percent foreign ownership.
However, foreign investors must be aware of Government Regulation No. 23 of 2020 and Law No. 4 of 2009 (amended), which states that foreign-owned mining companies must gradually divest at least 51 percent of their shares to Indonesian shareholders, by the 10th year of commencing commercial production.
Most notably, this rule was implemented by Freeport-McMoran (FCX), the owner of PT Freeport Indonesia (PTFI), which operates the Grasberg mine in Papua province; the mine is home to the world’s largest gold reserve.
PTFI was previously 90.64 percent owned by FCX, but in 2018, the Indonesian government took control of 51.23 percent of the company in exchange for the extension of Freeport’s mining operation permit.

Indonesia to Build Electric Vehicle Battery Plant, Production Starting in 2023

Indonesia will build its first electric vehicle battery plant and aims to begin production by 2023, in a project estimated to be valued at US$9.8 billion.

www.aseanbriefing.com

 

[Indos]

​

Bukalapak Woos Seller-Partners for Its Gigantic IPO

BY :GRACE N. CHANDRA, LONA OLAVIA

JULY 10, 2021

This undated photo shows a woman who uses Bukalapak's platform to complete a transaction at a convenience store in Jakarta. (B1 Photo)

Jakarta. Indonesian e-commerce giant Bukalapak has set its sight on millions of seller-partners to participate in the company's $1.5 billion initial public offerings, the largest in the country in a decade.

Bukalapak held a public expose inviting sellers, partners, and the public to become a shareholder preceding the company’s initial public offering on Friday.

The company sought to raise Rp 21.9 trillion ($1.5 billion), offering up to 19.3 billion new shares, or 25 percent of the company's enlarged capital, at Rp 750 to Rp 850 apiece. That would be the largest IPO in more than a decade since Adaro Energy raised Rp 12.2 trillion in 2008.

This debut is set to become a milestone in the Indonesian business sphere, as Bukalapak, founded over a decade ago, will be Indonesia’s first tech unicorn to tap into the country’s stock market.

Rachmat Kaimuddin, Bukalapak's chief executive officer, said the company encouraged 8 million independent sellers on its platform to take part in the offering.
“We invite our sellers and partners who have been struggling with Bukalapak to be part of the Bukalapak IPO," Rachmat said.

He said the IPO marked an important milestone for the company's journey to empower urban and rural communities around Indonesia.

The company plans to use two-third of the proceeds from the share, offering the company's working capital while investing the rest in its subsidiaries, including Buka Mitra Indonesia and Buka Usaha Indonesia, which focus on digitizing the street stalls across Indonesia.

“We hope that this IPO can increase our working capital so that we can focus and accelerate all our plans,” Rachmat said.

Bukalapak planned to continue to expand its user audience by focusing on branching out into more rural areas.

The company's data showed 70 percent of online transactions occur in Tier-1 cities — Jakarta, Surabaya, Medan, Semarang — which account for 10 percent of the Indonesian population. Tapping into the remaining 90 percent of the population was said to be a big goal for them going forward, Rachmat said.

SME Focused
Bukalapak revenue grew 26 percent to Rp 1.35 trillion last year from Rp 1.08 trillion a year earlier, showing its business model resilience amid the pandemic.

Rachmat attributed the performance to the company business model that focuses on empowering the small-, medium-sized (SME) enterprises. Naming themselves as an “All-Commerce” platform, Bukalapak plans to bridge offline consumers to online consumption, leading to a fairer economy for all.

"This new opportunity not only helps the community to be able to withstand the economic impacts arising from pandemic but also creates a positive socio-economic impact for the community," he said.

Bukalapak helped 4 million small businesses open shops last year, he said. Many of these SMEs are family-owned stalls. For every 50-100 homes, a person or a family opened a shop in their home and sold basic fast-moving consumer goods (FMCG) such as water, soap, coffee, instant noodles, etc. Rachmat said.

Bukalapak helped this business by linking them with manufacturers or major suppliers and providing them with a digital accounting platform, enabling them to access banks loan should they decide to expand their business. Bukalapak digital platform also allowed this small business to sell digital products, ranging from phone credits to airplane tickets.

In addition, Bukalapak's disciplined approach to business has also resulted in a lower burn rate on its capital. The company's loss narrowed to Rp 1.35 trillion last year from Rp 2.79 trillion a year earlier.

Bukalapak's financial report showed the company spent Rp 1.52 trillion for sales and marketing and Rp 1.49 trillion on general and administrative expenses in 2020, compared to Rp 2.32 trillion and Rp 1.27 trillion, respectively, in 2019.

Bukalapak Woos Seller-Partners for Its Gigantic IPO

The Indonesian e-commerce giant seeks to raise $1.5 billion from an IPO later this month, the country's largest in a decade.

jakartaglobe.id

 

[Indos]

Indonesia Finance Minister, Sri Mulyani, talked about green economy transition

 

[Indos]

Palm oil exports reach decade high: Gapki​

Dzulfiqar Fathur Rahman (The Jakarta Post)
PREMIUM
Jakarta
● Thu, July 15, 2021

The value of Indonesian palm oil product exports reached a decade high in May as commodity prices rose in line with the economic recovery seen in numerous developed and emerging economies. The average price of crude palm oil (CPO) on the Rotterdam market in terms of cost, insurance and freight (CIF) similarly reached a decade high at US$1,241 per ton.

At around $3 billion, palm oil products accounted for 18.5 percent of Indonesia’s total exports in May. “The rise in exports was also supported by the 12 percent increase in volumes to 2.95 million tons [in May] from April,” the Indonesian Palm Oil Association (Gapki) reported in a press release published on Wednesday. The biggest monthly increase in volume was seen in products derived from palm kernel oil (PKO), followed by derivative CPO products. Meanwhile, shipments of both CP...

Palm oil exports reach decade high: Gapki

Higher prices and volumes pushed Indonesian palm oil exports to around US$3 billion in May, which accounted for almost one fifth of the country’s total exports.

www.thejakartapost.com

 

[Indos]

Indonesia AlhamduliLLAH still posted 1. 32 billion USD surplus in trade for June 2021. Import raises 60 % from previous year.

Impor RI Naik 60,12%, Neraca Dagang Masih Surplus US$ 1,32 M

BPS mengumumkan neraca perdagangan Indonesia membukukan surplus pada Juni 2021. Ini karena ekspor masih lebih tinggi ketimbang impor.

www.cnbcindonesia.com

10 biggest Indonesia exports in June 2021

1. Animal/vegetable fats and oils with a value of US$ 1.8 billion
2. Iron and steel with a value of US$ 1.9 billion
3. Machinery and electrical equipment US$1 billion
4. Vehicles and parts thereof US$ 734.6 million
5. Various chemical products US$ 498.7 million
6. Footwear US$491 million
7. Metals starting, jewelry/gems US$ 519 million
8. Metal ore, slag and ash US$ 574.6 million
9. Paper, cardboard and articles thereof US$ 337.3 million
10. Pulp from wood US$ 248.8 million.

Besi Hingga Tekstil, Barang Ini Paling Banyak Diekspor RI!

Ekspor Indonesia pada Juni 2021, berdasarkan laporan Badan Pusat Statistik (BPS) sebesar US$ 18,55 miliar.

www.cnbcindonesia.com

 

[Indos]

Freeport Indonesia-Tsingshan talks for copper smelter fail
Japan's Chiyoda wins estimated $2.7 bn project in East Java

Freeport Indonesia's Grasberg copper and gold mine complex. ©Reuters

ERWIDA MAULIA, Nikkei staff writerJuly 16, 2021 20:17 JST


JAKARTA -- The local unit in Indonesia of U.S. mining giant Freeport-McMoRan said on Friday that talks with China's Tsingshan Holding Group about joint development of a major copper smelting plant in the Southeast Asian country have failed.

"[Freeport] could not reach a deal with Tsingshan to build the smelter," Riza Pratama, Freeport Indonesia's vice president for corporate communications, told Nikkei Asia, referring to a project the Chinese company had proposed in North Maluku Province.

Pratama declined to explain what went wrong following months of negotiations overseen by Mind ID, an Indonesian state-owned mining holding company that has the controlling stake in Freeport Indonesia.

Instead, Chiyoda International, a Japanese engineering and construction company with extensive experience in Indonesia, won a contract to design and build the smelting plant in another location -- Gresik on the island of Java, East Java Province -- for an estimated 300 billion yen, or about $2.7 billion.

Mind ID President Orias Petrus Moedak said in May that Tsingshan had approached the government with a "cheaper" proposal that he characterized as "interesting in terms of cash flow." But he also said the Indonesian side needed to check if it would indeed end up costing less.

Reuters reported that Tsingshan had called for building what would have been its first copper smelting plant in Weda Bay on the island of Halmahera in North Maluku, closer to Freeport Indonesia's operations in Grasberg, Papua Province on the island of New Guinea.

The Chinese stainless steel producer is separately building nickel and aluminum smelting plants in Indonesia, and could not immediately be reached for comment.

Freeport on Thursday announced that Chiyoda International won the engineering, procurement and construction contract to build the copper smelter within the Java Integrated Industrial and Ports Estate in Gresik. The Gresik smelter was the original plan before Tsingshan came with its alternative.

The new plant will be able to process 1.7 million tons of copper concentrate annually, adding to the 300,000 ton capacity of Freeport's existing copper smelter nearby. That is operated by Smelting, which is majority owned by Japan's Mitsubishi Materials.

Under the government's push to develop Indonesia's mining industry downstream, Freeport has been obliged to expand its smelting capacity to retain its export licenses.

Moedak had said a decision over the new plant needed to be finalized in May to ensure Freeport was able to meet the government's completion deadline at the end of 2023.

"We will do our best to make sure that the project will be completed on time," Chiyoda International Indonesia director Naoto Tachibana said in a press statement.

Freeport said that while the COVID-19 pandemic contributed to delays in the contract signing, preparations had been proceeding at the Gresik site, including site clearance and procurement of construction materials. The company said it is seeking 40,000 vaccine doses for construction workers to ensure no further delays.

"The contract signing reaffirms [our] commitment to build the smelter, in line with the divestment agreement in 2018," Freeport Indonesia President Tony Wenas said, referring to the acquisition of a majority stake in Freeport's local operations by Mind ID -- or Inalum as it was called at the time -- under the government's resource nationalism push.

Freeport said the contract with Chiyoda includes construction of a precious metals refinery in the same industrial park. Freeport operates one of the world's largest copper and gold mines in Grasberg.

Copper prices hit a record high in May, before falling back in recent weeks. Among the reasons is surging demand from the electric vehicle industry and renewable energy producers around the world. High quality copper is a key component in electric cars as it is used in motors, batteries and cables.

Freeport Indonesia-Tsingshan talks for copper smelter fail

Japan's Chiyoda wins estimated $2.7 bn project in East Java

asia.nikkei.com

 

[Indos]

A man recharges an electric car at a Perusahaan Listrik Negara's (PLN) recharging facility in Tangerang, Banten, on July 1, 2020. (Antara Photo/Muhammad Iqbal)

Indonesia's Battery Giant Needs $15.3b in Investments

BY :JAKARTA GLOBE
JULY 15, 2021


Jakarta. Industri Baterai Indonesia, an electric vehicle battery subsidiary of state-owned largest miners, has estimated that it would need $15.3 billion in total investment to develop an integrated electric vehicle battery, the company top executive said on Wednesday.

Toto Nugroho, the president director of Industri Baterai Indonesia, said the investment would cover processes from the mining of the battery raw materials, smelting/ refining, battery chemicals manufacturing, battery cells manufacturing, all the way to the recycling of used batteries.

"We need an investment of $15 billion, which is a challenge in itself. There is a timeline of around 3-4 years," Toto said in a session discussing the environmentally friendly automotive industry at the 2021 Investor Daily Summit on Wednesday.

According to a company's presentation, Industri Baterai Indonesia would need $160 million in investment to mine limonite and saprolite, metallic ores that rich in nickel, the main ingredient for lithium-ion batteries.

Next, the company would need to invest in smelting facilities, including rotary kiln electric furnace (RKEF) technology and another using high-pressure acid leaching (HPAL) technology, to process the ores. Industri Baterai Indonesia would need $1.3 billion in investment for each smelting facility.

The battery precursor materials and cathode would need $1.8 billion and $3.8 billion in investment, respectively, while the production of the battery cell itself may need an upfront cost of $6.73 billion. For battery recycling, Industri Baterai Indonesia sought to put in $30 million upfront capital.

Industri Baterai Indonesia’s presentation also mentions an energy storage system (ESS) with an investment of $40 million. This ESS stores energy generated by renewables such as solar panels.

"We are working with two big global players, LG Energy Solution from South Korea and CATL from China," said Toto.

He said the company expected the integrated production line could produce battery cells with a total capacity of up to 140 gigawatt-hour (GWh) per year.

Industri Baterai Indonesia has four shareholders with 25 percent each, namely the state-owned energy company Pertamina, state-controlled miner Antam, state utility firm Perusahaan Listrik Negara (PLN), and the state mining holding Indonesia Asahan Aluminum, also known as Mining Industry Indonesia (Mind ID).

Indonesia's Battery Giant Needs $15.3b in Investments

Industri Baterai Indonesia will develop an integrated battery business that covers mining, smelting, manufacturing, to recycling.

jakartaglobe.id

 

[Indos]

Delta Mas will likely be a center of electric cars industry in Indonesia. Currently Hyundai Motor factory is in here with the plan to produce electric car starting in March 2022. There are also Mitsubishi, Suzuki, Wuling factories here. The EV battery production is also planned to be set up here

Delta Mas, Bekasi, West Java ( 2 hours from Jakarta)

 

[Indos]

Three Indonesian Unicorn-Decacorn Technology Companies Will IPO, Who Will Follow Bukalapak?
16 Jul 2021 10:43 | Editorial Team

JAKARTA - The Financial Services Authority (OJK) brings good news for capital market investors who want to buy initial public offerings (IPOs) from start-up companies or startups. The reason is, there will be three technology companies with unicorn and decacorn status that will be listed on the Indonesia Stock Exchange (IDX).

OJK Capital Market Supervisory Chief Executive Hoesen said that the total asset valuation of the three startups was above US$21 billion or around Rp. 311.75 trillion (assuming an exchange rate of Rp. 14,500 per dollar).

"Currently, there are several startup companies in Indonesia planning to conduct IPOs. The three largest conglomerate technology companies are unicorn and decacorn with a valuation of 21 billion dollars. This is based on the data we got," he said at the 2021 Investor Daily Summit, Thursday, July 15.

But unfortunately, the OJK did not specify the names of the startup companies that were ready for an IPO on the IDX. Even so, unicorn and decacorn start-ups that will release shares to the public are considered to have an impact on the Indonesian capital market.

Furthermore, Hoesen said the entry of unicorns and decacorns will also increase market capitalization and attract investors, including foreign investors.

"Entering a technology company is predicted to stimulate trading on the domestic stock exchange," he said.

Hoesen assesses that currently technology companies are slowly starting to decorate issuers with the largest market capitalization values (big caps) on the IDX.

"Currently, the market cap of all technology issuers is still 5 percent of all issuers on the IDX. It is possible that issuers in the technology sector will become the top leading in the Indonesian capital market," he said.

For information, the startup in Indonesia with the current decacorn status is Gojek. Meanwhile, the unicorns are Tokopedia, Bukalapak, OVO, and J&T Express.

Bukalapak has confirmed its IPO and will go public on the stock exchange on August 6, 2021. Bukalapak targets to raise IDR 21.9 trillion in funds from this action.

Number of capital market investors

Hoesen said the number of capital market investors as of June 2002 1 reached 5.6 million SID or single investor identification. This figure shows an increase of 44.45 percent compared to the end of 2020 as many as 3.88 million people.

Furthermore, based on data from the Indonesian Central Securities Depository (KSEI), mutual fund investors dominate the number of capital market investors, namely 4.93 million people. Meanwhile, mutual fund investors showed an increase of up to 55.27 percent compared to the end of 2020 as many as 3.17 million people.

Meanwhile, the number of stock investors reached 2.51 million SID, an increase of 48.32 percent when compared to the end of 2020 as many as 1.69 million people. For investment in state securities (SBN) reached 538.78 thousand people, an increase of 17.03 percent from the end of 2020.

Meanwhile, in terms of gender, men dominate the number of capital market investors as much as 61.87 percent or with an asset value of IDR 623.72 trillion. While women control 38.13 percent with an asset value of IDR 202.82 trillion.

When viewed from the age of investors aged 30 years and under dominate the number of investors or as much as 58.39 percent. While investors aged 31 to 40 years reached 21.61 percent and the rest came from investors aged 41 to 50 years, 51 to 60 years and above 60 years.

Meanwhile, when viewed from the type of work, both civil servants and private employees dominate the number of capital market investors, namely 33.98 percent. Then, 27.73 percent of students, 13.59 percent of entrepreneurs and 4.64 percent of housewives.

Three Indonesian Unicorn-Decacorn Technology Companies Will IPO, Who Will Follow Bukalapak?

OJK Capital Market Supervisory Chief Executive Hoesen said that the total asset valuation of the three startups was above US$21 billion or around Rp. 311.75 trillion (assuming an exchange rate of Rp. 14,500 per dollar).

voi.id

 

[Indos]

It looks like Finance Minister will try to use debt in more prudent way, particularly to keep it manageable to avoid what happen during Soeharto administration. Rupiah is quite fragile in its nature, we have seen danger in 2018 and also 2020 where it almost reach 16.000 Rupiah per USD despite our economic number is still much better than many countries.

This is the risk to have Rupiah traded liberally while we had history about Asian Financial Crisis as well ( it gives clue to speculators that if the situation is getting worse, they can gain huge profit by playing Rupiah and betting it to crash), so dont underestimate the danger that may happen in the future. Good policy by Sri Mulyani. They also should limit the foreign loan so that next administration will have enough room to raise debt ratio if something like this Pandemic happen again in the near future. Only productive foreign loan that is used to build infrastructure and industry that should be prioritized until the end of Jokowi final term.

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Govt raises COVID-19 recovery budget by 7%

President Joko Widodo (second right) and Vice President Ma'ruf Amin (right) converse with Finance Minister Sri Mulyani Indrawati (second left) and Cooperatives and Small and Medium Enterprises (SME) Minister Teten Masduki before chairing a limited cabinet meeting in the President's Office, Jakarta, on June 6, 2020. The government has decided to increase its national economic recovery (PEN) budget as it battles a second COVID-19 wave.(Antara/Hafidz Mubarak A)



Vincent Fabian Thomas (The Jakarta Post)
PREMIUM
Jakarta
● Mon, July 19, 2021


The government has raised the national economic recovery (PEN) budget for the second time this year to finance the country’s fight against a second COVID-19 wave.

Finance Minister Sri Mulyani Indrawati said on Saturday that the budget had been raised by 6.5 percent to Rp 744.75 trillion (US$53 billion), most of which will be channeled to social safety net and healthcare programs. The ministry last raised the PEN budget by 73 percent in February.

Sri Mulyani said the government would restructure the state budget again to accommodate the higher PEN budget without adding more debt. “We will reallocate funds again, either from the central government or regional administration budgets, so that they can be p...

Govt raises COVID-19 recovery budget by 7%

Sri Mulyani said the government would restructure the state budget once again to accommodate the increase.

www.thejakartapost.com

 

[Indos]

Freeport Indonesia-Tsingshan talks for copper smelter fail
Japan's Chiyoda wins estimated $2.7 bn project in East Java

View attachment 762791
Freeport Indonesia's Grasberg copper and gold mine complex. ©Reuters

ERWIDA MAULIA, Nikkei staff writerJuly 16, 2021 20:17 JST


JAKARTA -- The local unit in Indonesia of U.S. mining giant Freeport-McMoRan said on Friday that talks with China's Tsingshan Holding Group about joint development of a major copper smelting plant in the Southeast Asian country have failed.

"[Freeport] could not reach a deal with Tsingshan to build the smelter," Riza Pratama, Freeport Indonesia's vice president for corporate communications, told Nikkei Asia, referring to a project the Chinese company had proposed in North Maluku Province.

Pratama declined to explain what went wrong following months of negotiations overseen by Mind ID, an Indonesian state-owned mining holding company that has the controlling stake in Freeport Indonesia.

Instead, Chiyoda International, a Japanese engineering and construction company with extensive experience in Indonesia, won a contract to design and build the smelting plant in another location -- Gresik on the island of Java, East Java Province -- for an estimated 300 billion yen, or about $2.7 billion.

Mind ID President Orias Petrus Moedak said in May that Tsingshan had approached the government with a "cheaper" proposal that he characterized as "interesting in terms of cash flow." But he also said the Indonesian side needed to check if it would indeed end up costing less.

Reuters reported that Tsingshan had called for building what would have been its first copper smelting plant in Weda Bay on the island of Halmahera in North Maluku, closer to Freeport Indonesia's operations in Grasberg, Papua Province on the island of New Guinea.

The Chinese stainless steel producer is separately building nickel and aluminum smelting plants in Indonesia, and could not immediately be reached for comment.

Freeport on Thursday announced that Chiyoda International won the engineering, procurement and construction contract to build the copper smelter within the Java Integrated Industrial and Ports Estate in Gresik. The Gresik smelter was the original plan before Tsingshan came with its alternative.

The new plant will be able to process 1.7 million tons of copper concentrate annually, adding to the 300,000 ton capacity of Freeport's existing copper smelter nearby. That is operated by Smelting, which is majority owned by Japan's Mitsubishi Materials.

Under the government's push to develop Indonesia's mining industry downstream, Freeport has been obliged to expand its smelting capacity to retain its export licenses.

Moedak had said a decision over the new plant needed to be finalized in May to ensure Freeport was able to meet the government's completion deadline at the end of 2023.

"We will do our best to make sure that the project will be completed on time," Chiyoda International Indonesia director Naoto Tachibana said in a press statement.

Freeport said that while the COVID-19 pandemic contributed to delays in the contract signing, preparations had been proceeding at the Gresik site, including site clearance and procurement of construction materials. The company said it is seeking 40,000 vaccine doses for construction workers to ensure no further delays.

"The contract signing reaffirms [our] commitment to build the smelter, in line with the divestment agreement in 2018," Freeport Indonesia President Tony Wenas said, referring to the acquisition of a majority stake in Freeport's local operations by Mind ID -- or Inalum as it was called at the time -- under the government's resource nationalism push.

Freeport said the contract with Chiyoda includes construction of a precious metals refinery in the same industrial park. Freeport operates one of the world's largest copper and gold mines in Grasberg.

Copper prices hit a record high in May, before falling back in recent weeks. Among the reasons is surging demand from the electric vehicle industry and renewable energy producers around the world. High quality copper is a key component in electric cars as it is used in motors, batteries and cables.

Freeport Indonesia-Tsingshan talks for copper smelter fail

Japan's Chiyoda wins estimated $2.7 bn project in East Java

asia.nikkei.com

Freeport Indonesia secures $1 billion loan for copper smelters​

A heavy vehicle traverses PT Freeport Indonesia's open pit mining area in the Grasberg mine in Mimika, Papua. The mining giant secured a $1 billion loan to develop a smelter to turn the mine's output into copper cathodes.(JP/Nethy Dharma Somba)


Norman Harsono (The Jakarta Post)
PREMIUM
Jakarta
Mon, July 26, 2021


Gold and copper mining giant PT Freeport Indonesia (PTFI) has entered a five-year, US$1 billion, unsecured credit facility to develop two metal smelters in Gresik, East Java, as the country moves forward with plans to develop downstream mining industries. PTFI shareholder Freeport-McMoRan wrote in a statement on July 22 that the funds would be used to expand an existing copper smelter and build a new one in Gresik.

The former project would cost an estimated $250 million and the latter, to be developed by Japan-controlled PT Chiyoda International Indonesia, an estimated $2.8 billion. The funds would also go toward developing a gold and silver refinery connected to the two smelters and estimated to cost another $250 million.

Freeport Indonesia secures $1 billion loan for copper smelters

The mining giant plans to use the loan to expand and upgrade an existing copper smelter and develop a new one, both in Gresik, East Java.

www.thejakartapost.com

 

[Indos]

Mitsubishi Pajero Sport is displayed at the Indonesia International Motor Show at Jakarta Expo ground on April 15, 2021. (Beritasatu Photo/Ruht Semiono)

Indonesia Emerges as Mitsubishi’s Largest Market in Q1
BY :HERMAN, HERU ANDRIYANTO
AUGUST 01, 2021

Jakarta. Japanese auto giant Mitsubishi Motors Corporation (MMC) has recently announced that Indonesia became its largest market by country in the first quarter of fiscal year 2021 thanks to government’s fiscal incentives related to the Covid-19 pandemic.

Mitsubishi sold 26,397 units in Indonesia during the company’s first quarter period from April to June 2021, representing an 11.5 percent share of its global sales, according to local subsidiary
Mitsubishi Motors Krama Yudha Sales Indonesia (MMKSI).

Indonesian sales are dominated by seven-seater X-pander which accounts for 49 percent, followed by SUV model Pajero Sport (20 percent) and small pickup L-300 (23 percent).

The X-pander enjoyed Indonesian government’s luxury tax exemptions issued during the pandemic to help the country’s automotive industry stay afloat amid sluggish global demand, according to MMC’s first-quarter financial results seen by The Jakarta Globe.

As a result, Indonesia makes up 54 percent of global X-pander sales in the period.

“This positive achievement encourages MMKSI to continue delivering the best products and services to consumers in the whole process of vehicle ownership,” Naoya Nakamura, President Director of MMKSI, said in a statement.

The Finance Ministry exempted the luxury sales tax for three months from March 1, in a move to increase car sales and help the country add 0.9 to 1 percentage point to its economic growth rate this year.

Indonesia is also the largest market for Pajero Sport, accounting for 38 percent of global sales volume of the model and 50 percent in Indonesia’s SUV market share due to “successful model change”, according to the report.

Mitsubishi's Indonesian plants began to produce X-pander and Pajero Sport in 2017.

The financial reports said Mitsubishi global sales volume stood at 230,000 units in the first quarter, a 91 percent increase on sales volume in the same period of the 2020 fiscal year.

Net sales soared by 202 percent to 431.9 billion yen year-on-year, according to the financial results.
In the ASEAN, Indonesia has now surpassed Thailand where Mitsubishi sold around 11,000 cars in the April-June period.

Car sales volume in Indonesia has picked up growth in the first half of the year, totaling 387,873 units or 33.5 percent higher from the same period last year, according to data from the Indonesian Automotive Manufacturers Association (Gaikindo).

Toyota remains a dominant market leader in Southeast Asia’s biggest country with a sales volume of 120,717 or 31.1 percent of the market share.

Sister company Daihatsu is ranked second with 17.3 percent, followed by Honda (12.7 percent), Mitsubishi (12.3 percent) and Suzuki (10.6%).

Indonesia Emerges as Mitsubishi’s Largest Market in Q1

Seven-seater X-pander enjoys a robust growth with Indonesia accounting for 54 percent of the model's global sales.

jakartaglobe.id

 

[Indos]

Chandra Asri inks $1.7 billion deal over new petrochemical plant

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Chimneys stand tall at the newly constructed gas processing plants operated by Chandra Asri in the industrial city of Cilegon in Banten, West Java.(Courtesy of Chandra Asri/.)


Divya Karyza (The Jakarta Post) PREMIUM Jakarta ● Tue, August 3, 2021

Publicly listed PT Chandra Asri Petrochemical, the country’s largest integrated petrochemical manufacturer, has reached a US$1.7 billion deal to develop a new petrochemical complex in Indonesia.

Under the deal, Thai Oil Public Co Ltd (Thaioil), which operates the largest refinery in Thailand, will buy a 15 percent share in Chandra Asri valued at $1.3 billion from parent company SCG Chemicals Co Ltd through a rights issue. Thaioil and SCG Chemicals plan to invest another $400 million in Chandra Asri subject to a final investment decision (FID) slated for 2022 and to approval from regulatory authorities.

“Indonesia’s dependency on imports of petrochemical products and growing domestic demand puts [the company] in a strategic position,” said TPIA corporate secretary Suryandi at a virtual press conference on Monday.

Chandra Asri inks $1.7 billion deal over new petrochemical plant

The country’s largest integrated petrochemical manufacturer, PT Chandra Asri Petrochemical (TPIA), has sealed a deal worth US$1.3 billion with Thailand’s largest refinery Thai Oil Public Co Ltd (Thaioil) for the development of a petrochemical complex.

www.thejakartapost.com

 

[Indos]

AlhamduliLLLAH, quite a strong growth

Indonesia GDP grows for first time since pandemic hit
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Jakarta downtown

Dzulfiqar Fathur Rahman (The Jakarta Post)
PREMIUM
Jakarta ● Thu, August 5, 2021


Indonesia has recorded its first economic growth since the COVID-19 pandemic hammered the country in early March last year, thanks largely to a resurgence in mobility and uptick in commodity prices as other countries re-emerged from pandemic curbs.

Statistics Indonesia (BPS) reported on Thursday that Indonesia’s gross domestic product (GDP) grew 7.07 percent year-on-year (yoy) in the April-to-June period, which is the first GDP growth booked in five quarters, ending the pandemic-induced recession cycle. At the height of the recession, Indonesia’s GDP contracted as much as 5.32 percent in the second quarter of last year, the sharpest drop since the 1998 Asian Financial Crisis.

Indonesia GDP grows for first time since pandemic hit

Statistics Indonesia (BPS) reported on Thursday that Indonesia’s gross domestic product (GDP) grew 7.07 percent year-on-year (yoy) in the April-to-June period, which is the first GDP growth booked in five quarters, ending the pandemic-induced recession cycle.

www.thejakartapost.com

 

[Indos]

Bukalapak, first unicorn to list on IDX, gains 25% on day one​

Bukalapak president director Rachmat Kaimuddin (left) and Bukalapak president commissioner Bambang Brodjonegoro (right) hold a certificate from Indonesia Stock Exchange (IDX) stipulating that the e-commerce company has been listed on the local bourse on Aug. 6, 2021.(Courtesy of Bukalapak/-)



Eisya A. Eloksari (The Jakarta Post)
PREMIUM
Jakarta ● Fri, August 6, 2021


E-commerce firm Bukalapak got off to a blazing start of trading on Friday as the first unicorn to go public in Indonesia, following the biggest initial public offering (IPO) the country has ever seen.

The company, which is listed under the ticker symbol BUKA on Indonesia Stock Exchange (IDX), saw its stock rise 24.71 percent to Rp 1,060 (74 US cents) apiece during the first hour of trading, from its IPO price of Rp 850. IDX president director Inarno Djajadi said Bukalapak’s IPO had attracted 96,000 investors.

“This listing has made history, because Bukalapak is the first unicorn to list on IDX and in the Southeast Asian stock markets,” he said on Friday. “We hope that Bukalapak can become an inspiration for unicorns, centaurs and other tech companies and make IDX their house of growth.”

Bukalapak, first unicorn to list on IDX, gains 25% on day one

Bukalapak, after making history as the first unicorn start-up to list on the Indonesian bourse, did not disappoint on its first trading day.

www.thejakartapost.com