In a major move to attract multinational corporations, Indonesia has secured a groundbreaking investment worth approximately $9 billion from a prominent British consortium, led by the renowned mining giant Glencore. The consortium’s substantial contribution will be channeled into the country’s flourishing mining and electric vehicle (EV) battery sectors. As the possessor of the world’s largest nickel reserves, Indonesia is determined to establish downstream industries with the ambitious objective of becoming a leading manufacturer of batteries and vehicles for the global electric car market.
While Investment Minister Bahlil Lahadalia refrained from divulging a detailed breakdown of the investment, he revealed that a significant portion of the funds would be allocated to an industrial park situated in the Bantaeng region on Sulawesi island. This industrial park, set to be powered by renewable wind energy, is expected to reach completion by September, solidifying Indonesia’s commitment to sustainable practices.
Collaborating with Glencore in the British consortium are Indonesian state miner Aneka Tambang, materials company Umicore, and energy company Envision Group, as confirmed by the Ministry. However, Umicore, Envision, and Aneka Tambang are yet to respond to requests for official confirmation.
Glencore, when approached for comment, adhered to its policy of refraining from addressing market speculations. Nevertheless, Bahlil expressed his enthusiasm, stating, “The investment amounts to approximately $9 billion if all goes according to plan. We are determined to expedite the process, if possible.”
Indonesia’s strategic decision to impose a ban on the export of unprocessed nickel ore since 2020 is aimed at securing a steady supply for both current and potential investors. Concurrently, the country is actively courting renowned EV manufacturers like Tesla and China’s BYD Group, aiming to position itself as a preferred investment destination within the global EV industry.
