Indonesia now has 187 smelters (processing nickel, bauxite, iron, tin, copper, and gold) to supporting government’s program to developing the processing/refining industry and mineral-based industrial areas. The Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves) said the government will continue the so-called ‘downstreaming’ program.

Indonesian government proudly announced that the country will be become the first to launch VinFast’s new electric vehicle (EV). VinFast from Vietnam, as you know, has been listed on Nasdaq, New York with market capitalization of US$12.73 billion, slightly smaller than Indonesia’s largest automotive player Astra International. 

Investment in hospitality industry is set to grow faster. The economic crisis caused by COVID-19 pandemic influenced the hospitality industry, causing some projects to be postponed. Gradual recovery of tourism, therefore, is the main driver to revitalization of this industry. 

Domestic demand of steel is now subject to continuation of the ambitious new capital city (IKN) Nusantara project because it is currently the single largest market. Outcome of February 14 election, accordingly, defines future demand of the commodity. 

China’s tire manufacturer Zhongce Rubber Group Co. Ltd (ZC Rubber) has officially announced its plan to construct its second overseas tire factory in Indonesia. The company, in addition, aims to commence tire production at the new facility by the end of 2024. ZC Rubber is also evaluating the possibility of building another plant in Mexico. 

So, Indonesia booked trade surplus of US$36.9 billion last year, dropped by 32% from 2022 due to 11.3% fall in export, while import declined by 6.55% only. Oil and gas sector recorded trade deficit of US$19.9 billion, dropped from US$24.42 billion thanks to substantial decline in import, while export was relatively stagnant.

First of all, we can’t blame it all to the Chinese for series of accidents in nickel smelters and stainless steel factories, being the most recent killing 21 workers. Indonesian government and local partners of Chinese companies should be held accountable for poor planning and supervision of the projects. 

An accident (explosion) at PT Indonesia Tsingshan Stainless Steel (ITSS), which killed 18 workers (including eight Chinese), is by far the worst in the sector. Some use this as an opportunity to revisiting ESG practices of Chinese investments in Indonesia, particularly in nickel-centered industrial areas of Morowali (Central Sulawesi), Konawe (Southeast Sulawesi), Obi Island (North Maluku), and Weda Bay (North Maluku).