More new names in the nickel-EV ecosystem
Nickel has been hovering above US$22,000 per ton for quite sometime now, supported by strong growth of electric vehicle (EV) market. Indonesia, which hosts the world’s largest reserves of nickel, continues to attract new investors.
EV: What a start to the new year
The world started 2022 with strong sales performance of electric vehicles. United Kingdom reported an impressive 130% year-on-year sales growth for battery EVs (BEVs) in January, while hybrids (PHEVs) increased by 48%. Plug-in electric car, accordingly, took 20.4% of the country’s passenger car market, of which 12.5% for BEVs.
Toll road projects update
President Joko ‘Jokowi’ Widodo has on Friday (Feb 4) inaugurated operation of Binjai-Stabat section (11.8 KM) of the Binjai-Langsa (131 KM) toll road in North Sumatra, which is part of the ambitious trans-Sumatra toll road program. The toll road connects North Sumatra and Aceh provinces, unlocking economic potentials in the surrounding areas.
Hongshi Cement’s Indonesian Expansion: Kobexindo & Beyond
Debate over development of Nusantara, the new capital city in Penajam Paser Utara, East Kalimantan province, escalated in recent days. Some questioned the government’s inconsistency in granting permit to PT Kobexindo Cement and its Chinese partner Hongshi Holding to build cement factory in the nearby Kutai Timur Regency.
More players in the EV Ecosystem
Late last year Djarum Group’s electronic division Polytron launched EVO electric motorcycle. Djarum, owner of Bank Central Asia (BBCA), the largest company on Indonesia Stock Exchange (IDX) by market capitalization, has also quietly invested in the upper stream of the EV ecosystem.
Bauxite-aluminium chain: More to come
President Joko ‘Jokowi’ Widodo inaugurated smelter grade alumina (SGA) 2022 export (2,000 tons) from PT Bintan Alumina Indonesia (BAI)’s facility at Galang Batang Special Economic Zone (SEZ), Bintan Island on Tuesday (Jan 25). BAI has actually started exporting its SGA last year, becoming the second bauxite processing facility in the country.
Industry Update
The Industry Ministry projected textile and textile products (TPT) to grow 5% this year, as the industry failed to optimize expansion in 2021 due to the COVID-19 pandemic and implementation of social restriction. But expected growth in investment and export would drive TPT growth this year.
Major chemical industry investments to watch
The world is transitioning from pandemic to endemic, so let’s talk more about some major investments in Indonesia’s chemical industry. This is one of manufacturing sectors set to grow fast after metal processing for various reasons.
Fresh Bali property deals
Property market in the resort island Bali has started to heat up again recently with the government’s decision to make the island more attractive for international standard medical and educational facilities.
More interesting dynamics in aluminium industry chain
It lags nickel industry chain, where the country has grown ferronickel, nickel pig iron (NPI), nickel-cobalt sulphate for EV battery, and stainless steel, but aluminium industry gains traction in recent years. More new names have entered the bauxite-alumina-aluminium chain before a total ban of bauxite ore export will be imposed in 12 months time.