Indonesia is committed to respecting and safeguarding all investments, President Prabowo Subianto said on Thursday, as he launched nickel- and aluminium-based projects worth billions.
Prabowo was speaking at a launch ceremony for commercial operations of industrial facilities and construction of other projects in an industrial park at Weda Bay partly controlled by Chinese steelmaker Tsingshan Holding Group.
He also launched the first exports of EV batteries, produced by REPT Battero, at the ceremony.
“I emphasise here an Indonesian government commitment to respect and safeguard all investments, from wherever,” he said. “We are committed to safeguarding our partnership as well as possible. It is a matter of honour for the Indonesian people to support our partners.”
Indonesia has attracted massive investment into its metal industry and smelting, mainly from China, with firms drawn to its rich nickel reserves, but recent policies have raised concerns from some business players.
Chinese companies operating in Indonesia have called for more business-friendly policies, warning the president in a letter that tighter mining quotas, higher taxes and a new pricing formula were driving up costs and threatening investment.
Country is world’s top exporter of nickel products
Indonesia, which holds the world’s largest nickel ore reserves, banned exports of raw nickel in 2020 to promote domestic processing industries.
The policy has helped Indonesia become the world’s top exporter of nickel products, making up around 60% of global supply, with export value growing from $3.3 billion in 2017 to over $33 billion by 2024.
Among companies investing in the new projects at Weda Bay are PT Guang Ching Nickel Cobalt, PT Weda Bay Aluminium and PT Flatsolar Energy Indonesia, the Investment Ministry said.
The four projects were worth $3.4 billion, while investment in six other projects is expected to reach $6.8 billion, investment minister Rosan Roeslani said at the same event on Thursday.
The new constructions include facilities to produce nickel-based battery material, battery components, and photovoltaic glass for solar panels, Rosan said. Development of two aluminium plants was also launched on Thursday, he added.
(Reporting by Fransiska NangoyAdditional reporting Stefanno Sulaiman, Stanley Widianto; Editing by Martin Petty and Philippa Fletcher)
