Indonesia and China are joining forces to potentially develop a center focused on nickel processing research, as Indonesia seeks to increase the benefits derived from its mineral resources. Airlangga Hartarto, Indonesia’s Chief Economic Affairs Minister, shared details about this prospective collaboration following discussions with Lu Kang, the Chinese Ambassador to Indonesia.
The plan includes possibly establishing the research facility in collaboration with Gadjah Mada University in Yogyakarta, alongside CNGR, a Chinese company specialized in battery metals. This company is based in Guangxi and is known for its advanced nickel processing technologies.
The specifics of the partnership between the university and CNGR have yet to be disclosed. However, CNGR is already active in Indonesia with its operations. It began producing nickel matte in Morowali in 2022 and has other production facilities in Weda Bay.
China remains a key investor in Indonesia, securing the third spot in foreign direct investments with $1.87 billion in the first quarter of 2024. This follows Singapore and Hong Kong, who lead with $4.2 billion and $1.89 billion, respectively.
The Indonesian government is eager to attract investment in local mineral processing and has seen significant investment inflows in the first three months of 2024. Out of Rp 43.2 trillion ($2.9 billion) invested, Rp 33.4 trillion was directed towards nickel smelting, showcasing Indonesia’s strategic focus on enhancing its nickel processing capabilities. Investments are also flowing into copper and bauxite smelting sectors.
According to the 2024 report by the US Geological Survey, Indonesia holds the largest nickel reserves globally, estimated at 55 million metric tons. In 2023, the country’s nickel mines produced about 1.8 million metric tons of nickel, a critical component in manufacturing batteries for electric vehicles.
This collaboration highlights Indonesia’s commitment to advancing its nickel processing technology and improving its standing in the global minerals market.
