MIND ID’s Expansion Projects
PT Mineral Industri Indonesia (MIND ID), parent of Aneka Tambang (ANTM), Bukit Asam (PTBA), PT Timah Tbk (TINS), and PT Freeport Indonesia (PTFI), plans to allocate Rp20.6 trillion of investment in five projects for 2025, including smelter grade alumina refinery (SGAR) in Mempawah, aluminum smelter in Kuala Tanjung, nickel project in East Halmahera, copper smelter in Gresik, and coal infrastructure project in Tanjung Enim.
Solar PV Industry Update
Talking about energy transition, the International Renewable Energy Agency shows that Indonesia had around 574 MW of installed PV capacity at the end of 2023. Nothing compared to the added 160 GW in China in the first nine months of 2024 alone.
Methanol Industry: Walk the talk?
Since the downfall of Soeharto in 1998, Indonesian leaders talked about the country’s intention to grow methanol industry, using its vast resources of natural gas and coal. Unfortunately, we haven’t seen any new methanol company established other than one existing producer in East Kalimantan province.
EV Industry Update
Nickel ended flat at US$16,000 on the London Metal Exchange (LME) last week or 50% below its price two years ago reflecting, among others, changes in the EV market worldwide. Growing dominance of LFP technology in EV battery and commercial operation of more HPAL smelters in indonesia weigh on nickel recovery.
Free meal project: Milk to follow meat?
Free meal for schoolchildren is the single largest project in Indonesia under Prabowo administration. It will start next year with a modest Rp71 trillion budget, but with ‘funding commitment’ from China, the government might scale up the program faster than planned.
Milk crisis: Blaming the free trade?
Budi Arie Setiadi, minister of cooperatives, blamed free trade agreements with Australia behind the difficulties of local dairy farmers to compete. The Indonesia-Australia free trade (IA-CEPA) was signed on March 4, 2019 by Jokowi’s cabinet. Budi Arie, leader of Pro-Jokowi (Projo) volunteers group, should have known that.
Pindad: Beyond Maung
State defense manufacturer firm PT Pindad is preparing to begin ‘commercial’ production of MV3 Maung SUVs as the official vehicles, replacing Alphard from Toyota. As quoted from Antara, Pindad CEO Abraham Mose stated that the company will continue to coordinate with the Government before producing the third generation of Maung.
EV Industry Update
The electric vehicle (EV) ecosystem in Indonesia continues to expand and drive supporting investments for EV and battery production in Southeast Asia, as we already inaugurated the first EV battery manufacturing plant of a joint venture between Hyundai Motor and LG Energy Solutions with US$1.1 billion of investment in West Java province. Meanwhile, Wuling also plans to start producing Wuling EV batteries in Indonesia by the end of 2024.
New Vice Ministers: Industry
Faisol Riza, a deputy chairman of the Islamic party PKB, has been appointed by President Prabowo Subianto as the Vice Minister of Industry. Faisol, who is a former 1998 activist, is assisting the Minister of Industry Agus Gumiwang Kartasasmita, a senior Golkar politician.
Chemical Industry Update
Crude oil has fallen 16% year-on-year, but naphtha, main raw material for petrochemical industry, gains 0.96%. Polymers, particularly polyethylene and polypropylene, two of the most popular raw material for plastic industry, were mostly flat. Profit margin of...