Chief Investment Minister Luhut Binsar Pandjaitan recently said that Indonesia would become the third-largest producer of lithium batteries by 2028, as the Southeast Asian country worked to expand its downstream industry.“By 2025, we can produce our own lithium batteries. And so we will be the world’s third largest lithium battery producer by 2027 or 2028,” Luhut told the 2023 DBS Asian Insights Forum in Jakarta on Wednesday.“So don’t look down on Indonesia,” Luhut said.Government data shows that there is $31.9 billion worth of investment in the pipeline for Indonesia’s battery chain development until 2026. About $12.35 billion will be invested in Kalimantan. Also in the pipeline is investment totaling $9.84 billion in Sulawesi, and the remaining $9.78 billion is in North Maluku.Indonesia attracted $45.6 billion in foreign direct investment (FDI) last year, and this sets a new high since 2000, according to the government. Indonesia also attributed this high FDI to its downstream industry policy, in which the country favors processing its ores at home for higher added value rather than exporting raw materials.“Developed countries love us when we export raw ores, but I told them ‘enough is enough’,” Luhut said while adding that Indonesia is now exporting iron and steel, rather than unprocessed ores.Indonesia’s full ban on unprocessed nickel ore export came into force in Jan. 2020. The government reported nickel downstream exports stood at $33.8 billion in 2022, of which $14.3 billion were iron and steel exports.The nickel ore export ban led to the European Union (EU) filing a lawsuit against Indonesia at the World Trade Organization (WTO). The EU feared that the ban could hamper the bloc's stainless steel production. Although the WTO panel ruled in favor of the EU, Indonesia has launched an appeal.Indonesia is planning to extend this ban to other minerals such as bauxite.The ban on unprocessed bauxite ores is slated to be in place in June 2023. The Indonesian government is expecting a lawsuit from China. About 90 percent of Indonesia’s bauxite ore exports go to China.Source: https://jakartaglobe.id/business/indonesia-set-to-become-thirdlargest-lithium-battery-producer-luhut

Mining services major Thiess has announced that it has secured a four-year ore hauling contract with Weda Bay Nickel, the largest nickel player on Halmahera Island, North Maluku, Indonesia. PT Weda Bay Nickel is owned 90% by Strands Mineral (held by Eramet 43% and Tsingshan 57%). PT Antam owns the remaining 10%.The contract, valued at around IDR1.3 trillion (A$125 million), will commence in May 2023 and run for 48 months. Thiess’ scope of works includes ore loading, hauling and stockpile maintenance.Thiess Executive Chair & CEO Michael Wright said: “We are very excited to embark on this new partnership with Weda Bay Nickel and to contribute to the growth of Indonesia’s thriving nickel industry, a metal critical to enabling the global energy transition. Sustainability is a top priority for Thiess, and we are committed to making a real difference to the sustainability of our clients’ operations.”He adds: “This is our first nickel operation in Indonesia, and demonstrates our ability to execute against our diversification strategy. Our team is looking forward to working with Weda Bay Nickel to create a mutually-beneficial and sustainable operation.”Thiess Group Executive – Asia Cluny Randell said: “We are thrilled to have the opportunity to join the nickel industry in Indonesia and to partner with Weda Bay Nickel. We are dedicated to building strong relationships with the local community in Halmahera and to working together to create a positive impact. We see this partnership with Weda Bay Nickel as the beginning of a long and successful journey in the region.”As part of Thiess’ ongoing commitment to sustainable mining, the company will deploy new Euro 5 Emission Standard trucks to reduce emissions from its mining services. Thiess will also establish a safe, diverse and inclusive workplace through initiatives such as fatigue monitoring technology on all ore haulers, and expanding its female operator training program for local women interested in joining the mining industry.Source: https://im-mining.com/2023/03/16/weda-bay-nickel-books-thiess-for-four-year-ore-hauling-contract/

Issuer coal contractor PT Delta Dunia Makmur Tbk. (DOID) posted an increase in net income to US$1.55 billion or equivalent to Rp.23.88 trillion in 2022 (jisdor exchange rate of Rp.15,380). Meanwhile, DOID recorded a net profit of IDR 453.21 billion, an increase of 10,107 percent. Based on DOID's consolidated financial report data, the issuer's revenue rose 70.65 percent to US$1.55 billion from the previous year which was recorded at US$910.54 million. The increase in revenue came from heavy equipment rental services by PT Berau Coal by 30 percent or US$467.61 million, PT Indonesia Pratama by US$270.51 million or 17 percent of total revenue. Then PT Adaro Indonesia with 15 percent or the equivalent of US$225.61 million and BM Alliance Coal Operations Pty Ltd. US$159.85 million or 10 percent of total revenue.Along with increased revenue, DOID's cost of goods also swelled 79.87 percent to US$1.34 billion, or the equivalent of Rp.20.60 trillion compared to the previous year which was recorded at US$775.68 million. As a result, DOID's gross profit was recorded at US$203.75 million or equivalent to Rp.3.22 trillion. Meanwhile, profit for the year was recorded at US$28.63 million or equivalent to Rp453.21 billion. This figure was observed to have increased by 10,107.13 percent compared to the previous year which was only recorded at US$280,546 or the equivalent of Rp.4.44 billion. Meanwhile, this coal mining issuer posted liabilities of US$1.31 billion, equivalent to Rp.20.14 trillion, with details of long-term liabilities of US$895.39 million and short-term liabilities of US$419.46 million.Source: https://market.bisnis.com/read/20230315/192/1637522/delta-dunia-makmur-doid-bukukan-laba-rp45321-miliar-naik-10107-persen

PT Golden Energy Mines Tbk (GEMS) is preparing capital expenditure of US$ 33 million or the equivalent of Rp. 508.2 billion (exchange rate of Rp. 15,400/USD) in 2023. The capital expenditure (capex) funds prepared this year are larger than last year's US$ 25 million or equivalent to Rp. 385 billion. President Director of Golden Energy Mines, Bonifasius, explained that last year his party budgeted a capex of US$ 25 million. In 2023, his party has prepared US$ 33 million for a number of needs. "This year we will allocate capex for port facilities and infrastructure, hauling roads including for supporting facilities," he explained to Kontan.co.id, Monday (13/3).Boniface further explained that the available capex budget is also used to support the Company's operational performance. Regarding the business prospects this year amid the continuing slump in coal commodity prices, Bonifasius stated that his party is still paying close attention to global conditions in global prices. But aside from that, he remains optimistic. "GEMS will do its best to achieve optimal performance," he said. Bonifasius emphasized that throughout this year, GEMS will continue to achieve 2022 performance and remain focused on performance that is beneficial to all stakeholders. GEMS targets production to increase by 5% -7% compared to the 2022 realization. This target has of course been approved by the Government's Work Plan and Budget (RKAB).Source: https://stocksetup.kontan.co.id/news/golden-energy-mines-gems-menyiapkan-belanja-modal-us-33-juta-tahun-ini

PT Habco Trans Maritima Tbk (HATM), a sea transportation company, signed a cargo transportation contract with Guang Ching Nickel and Stainless Steel (GCNS), part of the Tsingshan Group for a duration of 7 years. The amount of cargo transported for Tsingshan or GCNS reaches 4.2 million matrix tons (MT) per year with a potential revenue contribution of IDR 475 billion per year. Thus, for 7 years PT Habco Trans Maritima Tbk (HATM) has the potential to earn IDR 3.3 trillion in revenue."This collaboration is effective as of January 2023," said Main Director of PT Habco Trans Maritima Tbk (HATM) Andrew Kam, quoted by Investor Daily Monday (13/2/2023). He said the company upholds HATM's good relations with Tsingshan and GCNS. "This long-term transportation contract will be a symbol for HATM to prioritize and maintain the level of customer trust," he said.PT Habco Trans Maritima Tbk (HATM) is a company specializing in the operation of bulk carrier vessels which is part of integrated maritime solutions for the holding company PT Habco Primatama. Head of Energy Procurement Manager, Tsingshan Group Sam Song said Tsingshan Group is happy to work with PT Habco Trans Maritima Tbk (HATM), because it is responsive in communicating what is needed."Tsingshan Group wants to have a long business partnership with Habco Trans Maritima to support our business in Indonesia," he said. In a recent disclosure of information on the Indonesia Stock Exchange (IDX), HATM signed a credit agreement with BCA worth IDR 150 billion. The funds are used to purchase a new fleet of ships. PT Habco Primatama was founded in 1991 and has developed a sea transportation business from upstream to downstream. Habco Group's services focus on maritime logistics such as barging, stevedoring, floating cranes, docking and shipyards. The shipping sector, especially bulk carrier services, has a mid-to-high barrier to entry due to high demand for vessels and rising prices for iron materials. It is predicted that the number of bulk carrier fleet will only increase by 0.9% during the coming 2024-2026.Source: https://www.beritasatu.com/ekonomi/1032394/habco-trans-raih-kontrak-dari-tsingshan-group-rp-33-t

PT Indo Tambangraya Megah Tbk (ITMG) is aiming to increase performance in terms of coal production and sales for 2023. Director of Corporate Communications & Investor Relations Yulius Gozali said, for this year ITMG is aiming for coal sales of around 21.5 million tons to 22.2 million tons . This number has increased from the realization in 2022 where ITMG coal sales amounted to 18.9 million tons which were marketed to China around 5.9 million tons, Indonesia amounted to 4.2 million tons, Japan amounted to 2.9 million tons, the Philippines around 1.5 million. tons, India as much as 1.1 million tons, other countries in Asia Pacific, and Europe."ITM's financial performance, including revenue and net profit will be affected by coal commodity prices because ITM's main business is as a coal producer," Yulius told Kontan, Friday (10/3). Yulius has yet to detail his revenue and net profit targets this year. What is clear is that in order to streamline this year's work plan, ITMG has allocated capital expenditure of US$ 84.3 million. Later, these funds will be used for general maintenance (equipment overhaul), construction of supporting facilities, preparation of new mines, and expansion into the renewable energy business sector.Previously, Main Director of ITMG Mulianto said of the sales volume target in 2023, as much as 20% of the selling price had been set, 45% referring to the coal price index. While the remaining 35% has not been sold. "ITMG will continue to explore mining assets to ensure organic growth of its coal reserves, develop new mining areas, and pay attention to opportunities that exist in other minerals," Mulianto said in an official statement, Wednesday (1/3). Meanwhile, in order to ensure sales of 35% of uncontracted coal volume, ITMG is preparing a number of strategies, including offering it to regular buyers and participating in tenders both in the domestic market and the export market. "Also offering prospects and potential buyers, especially ITMG, will optimize the premium market," said Yulius. Just so you know, ITMG recorded a net profit of US$ 1.2 billion in 2022. This number shot up 152.34% from the net profit realized in 2021 which was only US$ 475.57 million.The increase in net profit was in line with the increase in Indo Tambangraya's revenue. This coal mining issuer posted revenue of US$ 3.63 billion, up 75.14% from revenue in 2021 which was only US$ 2.07 billion. Revenue from coal sales to third parties dominated ITMG's revenue, amounting to US$ 3.52 billion, followed by coal sales to related parties amounting to US$ 105.09 million. As for customers who have transactions of more than 10% of total consolidated net income, namely to Marubeni Corporation worth US$ 433.39 million. In terms of geographical segmentation, Southeast Asia (except Indonesia), India and Pakistan were the main destinations for ITMG sales, which reached US$ 1.02 billion, followed by sales to Japan worth US$ 962.56 billion, sales to East Asia regions such as Taiwan, China, Hong Kong and Korea valued at US$ 958.79 million, sales to the domestic market amounted to US$ 664.48 million, and sales to Europe amounted to US$ 25.39 million.Source: https://investasi.kontan.co.id/news/indo-tambangraya-itmg-anggarkan-capex-us-843-juta-di-2023

VivoPower and its wholly-owned subsidiary, Tembo e-LV have entered into a memorandum of understanding with leading Indonesia-based mining solutions provider Petrosea to sell, distribute and market Tembo electrification conversion for Toyota 4×4 vehicles and/or 4×4 Toyota vehicles which have been fully electrified by Tembo.Under the proposed agreement, Petrosea would commit to selling 2,000 Tembo e-LV conversion kits through December 2027. The proposed agreement must be finalised prior to April 30, 2023, unless the parties agree to an extension, and all purchase commitments would be subject to the terms and conditions set forth in the final agreement, VivoPower clarified.The Tembo kits transform diesel-powered Toyota Land Cruiser and Hilux vehicles into ruggedised electric light vehicles for use in hard-to-decarbonise sectors. Alongside solar generation, battery storage, and on-site power distribution, Tembo e-LV products are a key component of VivoPower’s turnkey net-zero solutions for corporate decarbonisation, it says.Petrosea is a multi-disciplinary contract mining, engineering, procurement & construction, and oil & gas services company that, VivoPower says, is fully committed to prioritise ESG as a continuation of the company’s sustainability strategy. Petrosea offers complete pit-to-port mining solutions, integrated engineering, procurement, and construction capabilities as well as logistic support, while demonstrating absolute commitment to safety, health & environment, quality management, and business integrity. VivoPower and Petrosea intend to finalise the proposed agreement as soon as practicable.Source: https://im-mining.com/2023/03/13/petrosea-signs-mou-to-roll-out-tembo-electric-light-vehicle-conversion-kits-throughout-indonesia/

Mining company Merdeka Battery Materials, a subsidiary of Merdeka Copper Gold (MDKA), is preparing to operate 21,000 hectares of mining area in Konawe, South East Sulawesi, which has one of the biggest nickel reserves in the world. “The area we are set to manage measures 21,100 hectares in Konawe. It has one of the biggest nickel deposits in the world,” Merdeka Copper Corporate Communication Manager Dinia Widodo said during a recent visit to B-Universe Media Holdings in Jakarta.Dinia said Merdeka Battery is “riding the wave of opportunity” in the government’s electrification push and ambition to make Indonesia a major electric vehicle ecosystem. The company plans to launch an initial public offering in the second quarter of the year, she said without citing a date. Merdeka Battery currently owns a 51 percent share of Sulawesi Cahaya Mineral, which manages an estimated 1.1 billion tons of nickel ore deposits.  It also has a controlling stake in Cahaya Smelter Indonesia, Bukit Smelter Indonesia, and Zhao Hui Nickel which run smelters to process nickel ores. Furthermore, Merdeka Battery has a 32 percent share in the Konawe Industrial Park. Parent company Merdeka Copper runs a gold mine in Banyuwangi, East Java, and a copper mine in Wetar Island, Maluku.“Another production site is currently under construction in Gorontalo. Hopefully, it will come operational this year,” Dinia said. Last month, Merdeka Copper announced the finding of 263 million tons of mineral resources containing 6.35 million ounces of gold in Gorontalo. The gold mining project is expected to begin in the third quarter of the year.Source: https://jakartaglobe.id/business/merdeka-battery-to-manage-one-of-worlds-biggest-nickel-mines

PT Golden Energy Mines Tbk (GEMS), a coal mining company owned by the Sinarmas Group, posted a net profit of US$695.4 million in the 2022 fiscal year. When compared to the previous year, GEMS's net profit in 2022 rose 96.4% on an annual basis or year-on-year (yoy). In 2021, the company's net profit was recorded at US$354.02 million.According to the recently released financial report, GEMS' net profit in 2022 was supported by sales performance which reached US$2.92 billion. Sales in 2022 grew 83.6% yoy. Based on the sales market, GEMS will rely on the export sales market in the 2022 financial year. The company's overseas sales will be recorded at US$2.1 billion in 2022, while the remaining US$816 million will go to the domestic market. As of December 31, 2022, GEMS' total assets were recorded at US$1.13 billion. While the total equity is US$ 588 million.Source: https://www.idnfinancials.com/news/46276/golden-energy-mines-profit-skyrockets-yoy

Indonesia’s Harita Nickel has started its investor roadshow ahead of a $600m public listing later this month. This comes as the first act in a political effort to keep nickel processing within Indonesia. The country has seen a record year for public listings, with nickel companies driving the charge. The Financial Times reports that Harita Nickel, a subsidiary of the Harita Group, hopes to raise at least $600m in March. Merdeka Battery Materials is also planning a local listing in the first half of this year. Hillcon, a nickel producer that went public on the stock exchange last week, is currently trading 25% higher than its initial offering price.Investors seem enthusiastic as Indonesia seeks to become a key player in the electric vehicle (EV) supply chain. Indonesia has the largest nickel reserves in the world and is also the largest producer. In total Indonesia holds around 22% of the world’s nickel reserves. Indonesian president Joko Widodo wishes for Indonesia to become a key player in the global EV supply chain. He has said of their position that “around 60 percent of electric cars will depend on [their] EV batteries, 60 percent of the world’s market share.” Building an Indonesian supply chainIn 2019, Indonesia banned the export of raw nickel, seeking to expand its downstream processing capabilities. As part of a process known as “downstreaming”, external companies are encouraged to build production plants on Indonesian soil, contributing to its domestic economy. Following the ban, foreign EV manufacturers have made plans to develop their business in the country. South Korean company LG Energy Solutions has announced investment of $9.8bn in the country for the production of EVs.  In 2021, LG Energy Solutions and Hyundai Motor Group also began the construction of a $1.1bn EV battery plant in Bekasi, West Java.China’s EV company CATL have already invested in the Indonesian industry while Tesla and BYD are being courted by the government. Indonesian nickel exports were valued at nearly $30bn last year, more than ten times what they were a decade ago. In addition to nickel, other metal companies are heading for the market. Indonesia’s second-largest copper and gold miner, Amman Mineral International, is planning an IPO of up to $1bn in the first half. President Joko Widodo said in has 2022 keynote speech that they will “create a large ecosystem so that other countries will depend on us because we already have nickel, copper, bauxite, and tin. We have enormous potential”.Source: https://www.mining-technology.com/news/indonesian-nickel-evs/