Investment Minister Bahlil Lahadalia on Friday gave the latest updates on Indonesia’s proposal for a global nickel cartel, saying that it has had intense talks with some unnamed countries.

Resource-rich Indonesia has been proposing a group of nickel-producing countries that operates in a similar manner to the Organization of the Petroleum Exporting Countries (Opec). The Opec says it aims to coordinate the petroleum policies of its member states and keep the oil markets stable. And Indonesia wants to see a similar group for nickel, which is a key ingredient for electric vehicle (EV) batteries.

"There are three countries whom we already have been intensely communicating with," Bahlil told reporters in Jakarta on Friday, commenting on the progress of the Opec-style nickel group.

The minister, however, refused to disclose the name of the said countries. When asked about their initial response to the plan, Bahlil said: "[they thought] it was a great idea, but we still need to work on the details of the proposal."

President Joko “Jokowi” Widodo last month tried to pitch the Opec-style nickel cartel at Hiroshima's G7 Summit. Jokowi told the world leaders of Indonesia’s industrial downstream strategy, in which the country preferred refining raw minerals domestically rather than shipping out unprocessed ores. 

“I hope G7 countries can become a partner in these industrial downstream [policies]. It is time to establish an OPEC-like group for other products such as nickel and palm oil,” Jokowi said at the G7 Summit, as quoted by the Presidential Secretariat.

According to the 2023 US Geological Survey report, Indonesia and Australia hold the title as the countries with the world’s largest nickel reserves. Both countries’ nickel reserves amount to 21 million metric tons, respectively. Indonesia’s mines produced 1.6 million metric tons of the silvery metal in 2022. The nickel mine production in Australia reached 160,000 tons that year. 

Bahlil last year had proposed the nickel cartel to Canadian International Trade Minister Mary Ng on the sidelines of the G20 Summit. The US Geological Survey data shows that Canada’s nickel reserves stand at 2.2 million metric tons with its mine production in 2022 reaching 130,000 metric tons.

“All this time EV producing countries are being protectionists. Consequently, countries that are producing the battery raw materials fail to enjoy optimum added values from the EV industry. We hope all nickel-producing countries can benefit from an evenly distributed added value,” Bahlil was quoted as saying by news outlet Antara last November.

Image source: Antara Photo

Source: https://jakartaglobe.id/news/indonesia-in-talks-with-3-unnamed-countries-for-opeclike-nickel-cartel