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.
More Nickel Facilities Entering Production Stage
PT Huayue Nickel Cobalt, subsidiary of Huayou Cobalt Group, has just produced its first batch of nickel-cobalt hydroxide from its smelter in the Indonesia Morowali Industrial Park (IMIP), Central Sulawesi province. This becomes the second company in Indonesia to produce nickel and cobalt sulphates, main precursors for EV battery.
Toll Road Projects Update & Outlook
The Manado-Bitung toll road in North Sulawesi province (40 KM) is getting closer to full commercial operation. The last section (2B, connecting Danowudu-Bitung) has just been opened for the Christmas and New Year holidays. With 99.9% physical construction, the section shall be fully commercial in the first quarter of 2022.
The Russian Lobby Continues
The Air Force Chief of Staff (KSAU) Air Chief Marshal Fadjar Prasetyo told the press that the Air Force has had to abandon the plan to purchase the Russian Sukhoi Su-35 fighters. Nevertheless, some believe that the game isn’t over as Russia continues to lobby.
Erick Thohir, the Dismissal of BUMN Directors, and Conflict of Interest
Minister of State-owned Enterprises (BUMN), Erick Thohir made Nico Kanter director of PT Aneka Tambang Tbk (ANTM) to replace Dana Amin. Nico is the best choice because he has a lot of experience in mining companies, such as BP Tangguh. Nico was also the President Director of PT Vale Indonesia, the second-largest nickel mining company in the country, after PT Indonesia Morowali Industrial Park. Nico is a director who has a good portfolio in the mining sector.
Gojek’s Electric Push
Gojek’s venture into electric vehicles is becoming increasingly real. It announced a joint venture with TBS Energi Utama (TOBA) last month to form Electrum to manufacture electric vehicles and its supporting technology. In the same month, Gojek also announced its trial with Gogoro to operate electric motorcycles in Jakarta last month. In addition to that, Gojek also works with the Gesits electric motorcycles. Battery swapping is at the core of this new venture.