Affirming Indonesia's leadership in the global energy transition, President Prabowo Subianto witnessed the signing of a strategic collaboration between PT Vale Indonesia Tbk (INCO) and GEM Co Ltd in Beijing, China, during his visit to strengthen business relations between Indonesia and China.
The project, valued at USD 1.4 billion and utilizing High-Pressure Acid Leaching (HPAL) technology, is located in Central Sulawesi and aims to become a net-zero nickel processing plant, with an annual production of at least 60,000 tons of nickel in the form of Mixed Hydroxide Precipitate (MHP)—a key component for energy storage system (ESS) batteries.
This investment includes the development of a USD 40 million research and development center for knowledge transfer and the development of local Indonesian talent, USD 30 million for an ESG Compound encompassing green landscapes, employee dormitories, domestic water supply, and waste treatment, and USD 10 million for commitments to community development and public facilities.
President Prabowo’s presence at this event demonstrates Indonesia's commitment to advancing a green economy and building a downstream industry that meets global demand for high-value, sustainable MHP.
“We in Indonesia and Southeast Asia feel that we want to continue collaborating in synergy with the resurgence of China as a major global force. We want to be part of this resurgence, not only as an economic power but also as part of a strong civilization,” he said.
Therefore, Prabowo emphasized, China’s entrepreneurial spirit in Indonesia has become a key element in strengthening economic cooperation between the two countries.
“We must set an example that this collaboration is the path to be taken and nurtured. We welcome and will work hard to provide a favorable atmosphere for investments coming into Indonesia,” he stated.
Driving Global and National Goals Through Sustainable MHP Production
Designed as a net-zero project, this facility will produce MHP with environmentally friendly practices and the latest technology for sustainable nickel processing. Through cross-market international collaboration, this project strengthens Indonesia's central role in the global transition to clean energy.
“Our vision for the HPAL Project is to set a new global standard in sustainable MHP production,” said PT Vale CEO Febriany Eddy.
This project is not merely about MHP production—it serves as a model of responsible resource management that benefits both Indonesia and the world.
“By integrating advanced technology, environmentally friendly practices, and a commitment to net-zero production, we are shaping a future where Indonesia is recognized as a leader in sustainable industry development,” she added.
Boost Economic Growth and Empower Local Communities
Aligned with the Indonesian government’s economic growth target of 8%, this HPAL Project is designed to create jobs, attract new investments, and enhance local economic growth in surrounding communities. The project will act as a catalyst for economic activities, helping uplift local communities while strengthening Indonesia's global reputation as a sustainable industrial force.
Empowering Indonesian Workforce Through Innovation and Knowledge Transfer
A pillar of this project is the plan to establish a research center focused on HPAL technology development, empowering Indonesian professionals through technology transfer and skills development. Enhancing education, skills, and technical capacity will ensure that Indonesian talent is ready to drive the next wave of industrial growth.
Setting New Standards in ESG Excellence
The project is expected to become a net-zero MHP processing plant. PT Vale and GEM’s dedication to environmental preservation and sustainable development reflects a shared vision of responsible resource management, in line with global sustainability standards. This project demonstrates to the world that Indonesia's nickel industry is ready to meet the challenges of the green energy transition while upholding the highest environmental standards.
GEM Chairman Xu Kaihua emphasized the global significance of this project.
“PT Vale is a world-class company that prioritizes strong ESG principles. We are proud to partner with PT Vale to provide raw materials that support the global shift towards renewable energy,” he stated.
The HPAL Project, he continued, is a vital collaboration that combines sustainable material processing expertise with Indonesia's abundant resources. This project is not only a step toward a cleaner future but also lays the foundation for deeper cross-border cooperation on green innovation.
“Together with PT Vale, GEM will implement a net-zero emissions concept, advanced technology, and high ESG standards in the project design, creating a world-class green park with green nickel resources, local technology, and local talent, to process laterite nickel ore directly into battery materials, promoting the upgrade of Indonesia's nickel industry from conventional stainless steel to new energy, and maintaining Indonesia's global competitiveness in nickel resources,” he concluded.
