Indonesia nickel boom on track to overshadow palm oil: investment chief
JAKARTA (Reuters)-
Nickel in Indonesia
The output value of related industries such as stainless steel and battery materials will exceed its second
The head of the company\'s investment committee said Wednesday that palm oil is the biggest source of export revenue for the next 10 to 15 years.
Last year, Southeast Asia\'s largest economy suffered a decline in foreign direct investment, but one area that attracted more overseas funding was nickel processing, which included $4 billion in China-
Led project for battery production
Nickel chemicals for electric vehicles (EVs).
Indonesia will also overtake Japan and India as the world\'s second-largest economy.
Second only to China\'s largest stainless steel producer, when China had reached the industry\'s target of producing 4 million tons of stainless steel every year from its main production base in molowari, Sulawesi.
\"The value of our palm oil industry exports is about $18 to $20 billion.
I can see Nickel and its derivatives, stainless steel, carbon steel, lithium-
Ion battery, which has surpassed this level in the next 10 to 15 years, \"Thomas Lembang, director of Indonesia\'s Investment Coordination Committee, said in an interview.
Large red earth reserves in Indonesia-
Nickel cast iron used in stainless steel production-
It\'s also an important component of lithium.
Ion batteries for electric vehicles.
Developers led by Chinese companies
Stainless steel included
Manufacturer Qingdao Holding Group, battery company GEM Co. , Ltd. and contemporary ampere ex Technology Co. , Ltd. , manufacturer of lithium batteries (CATL)-
The construction of lithium battery projects in molovale began in January.
\"Qingdao is ahead, but at least two other Chinese companies are catching up with them,\" Lembong said . \" WHO predicts that three to four manufacturers will eventually emerge in the battery industry.
Molovali\'s industrial park and another $10 billion park being built on the island of hamahra are part of Beijing\'s \"Belt and Road\" initiative, but Limbang noted that, qingdao is also attracting a 40% stake in Japanese investors.
\"For me, this is a good example of the way along the Belt and Road.
More open, more inclusive and more professional . \"
Indonesia\'s discontent with Chinese and ethnic minority communities has been brewing, so investment from its huge neighbor could be sensitive.
According to reports circulating on social media,
The Led project has brought in a large influx of Chinese workers, although authorities say only about 3,000 of the nearly 30,000 workers in molovale are foreigners.
\"I predict that the public will soon be aware of the benefits of these investments, thus making public support very supportive of Chinese investment in the coming years,\" Lembong said . \".
Indonesia, second
In addition to Thailand, Southeast Asia\'s largest car production center has also been seeking to position itself as a global hub for the production and export of electric vehicles in Asia and beyond.
Indonesia announced plans to launch a fiscal plan to provide tax cuts to electric vehicle battery manufacturers and car manufacturers and sign preferential tariff agreements with other countries with high demand for electric vehicles.
Minister of Industry hatato said on February.
Indonesia aims to produce 20% of its cars into electric vehicles by 2025, about 400,000.
Deputy Minister of Industry, Haryanto, also said in last December that the world\'s fifth-largest Hyundai Motor Company
As part of a $0. 88 billion car investment, the biggest carmaker plans to start producing electric vehicles in Indonesia.
Lembong, who declined to name potential electric vehicle investors, said that \"it\'s a considerable leap\" from producing batteries to making electric vehicles, at least before domestic usage grew
\"If you don\'t have a huge user base for electric vehicles, why do you have to produce them here?
But electric cars will not take off as long as diesel and gasoline are subsidized. \"He said.