The Indonesian Nickel Miners Association (APNI) has announced potential investment interest from Australian mining giant BHP in Indonesia’s nickel industry in anticipation of new regulations under the incoming Prabowo Subianto-Gibran Rakabuming Raka administration.

Meidy Katrin Lengkey, Secretary-General of APNI, revealed that discussions have taken place, though no formal confirmation has been made.

“There is potential for this to happen. We hope companies outside China will also consider investing in Indonesia,” Meidy said during an interview in Jakarta on Monday, July 29, 2024.

The possibility of BHP entering the Indonesian market could materialize as early as next year, contingent on the political climate and forthcoming regulations.

APNI is currently awaiting policy decisions from the new government, led by President Prabowo Subianto and Vice President Gibran Rakabuming Raka, particularly those that could invigorate investor interest.

BHP’s investment interest is driven by the company’s need for raw materials to produce nickel matte derivatives.

“Essentially, any investment will require them to secure an upstream partner first,” Meidy said.

The presence of numerous nickel smelters in Indonesia further enhances the appeal for potential investors like BHP.

Indonesia, the world’s largest nickel producer, has recently imported 380,000 tons of nickel ore from the Philippines as of July 2024.

This importation is partly due to insufficient domestic supply, with local miners facing delays in receiving production approvals.

Meidy emphasized that there are no regulations preventing companies from importing nickel, provided it is processed within Indonesia.

This situation was echoed by PT Kalimantan Ferro Industry, which continues to import nickel ore from the Philippines for its smelter operations in East Kalimantan. The company’s representative, Ardhi Soemargo, cited delays in obtaining local supply approvals as the reason for importing nickel.

As the industry awaits new government policies, the potential entry of BHP into Indonesia’s nickel sector could signal a significant boost to the country’s mining industry, diversifying investment sources beyond the dominant Chinese presence.