Indonesia’s discussion with electric automaker Tesla made headline again last week as Bloomberg reported that the two are closing in on a deal. However, Tesla’s CEO Elon Musk was quick to respond via his recently-acquired Twitter cautioning against citing “unnamed sources” as they are frequently false. So where is Indonesia currently in the talks to attract Tesla into building an auto factory in the country? Home to the biggest nickel reserves in the world, Indonesia has been leveraging its potential to attract investment in battery and electric vehicle (EV) production.It is currently building an end-to-end EV battery production ecosystem, from mining to recycling, and seeking to expand it to an EV manufacturing ecosystem. In EV battery production, Indonesia has been receiving flocking interests, especially from Chinese companies. Indonesia’s Morowali Industrial Park is home to the lithium-ion battery plant backed by subsidiary of China’s Contemporary Amperex Technology Co. Ltd. (CATL), the world’s biggest EV battery manufacturer, and GEM Co., a supplier to Samsung Electronics, PT Indonesia’s Morowali Industrial Park (IMIP), China’s Tsingshan and Japan’s Hanhwa Co. Ltd, and has made its first shipment of 1,200 tons of nickel metal. Furthermore, the Morowali Industrial Park is also home to a refining facility run by Zhejiang Huayou Cobalt Co., and the site of CNGR Advanced Material Co.’s future smelting plant. In August 2022, Tesla signed pricing agreements with Huayou and CNGR to supply ternary precursor materials produced in their factories in Indonesia and made from the country’s nickel reserves. Huayou will supply the EV maker from July 1, 2022, to the end of 2025 and CNGR from 2023 to 2025. Meanwhile, for EV manufacturing, South Korea’s automaker Hyundai had launched its plant in Indonesia in March last year and sold the country's first locally assembled EV in the market throughout 2022. China’s Wuling Motors Holdings has also built assembly facilities in Indonesia and set a record for the most battery EV sold in the country in 2022. With an established EV battery production ecosystem where Tesla has made deals with and precedents from EV automakers that have built and sold their cars in the country, the discussion to have Tesla build its EV factory in Indonesia has been dragging for a long time, so the issue may not be production ecosystem unreadiness. Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan said the country is preparing for some incentives to attract giant EV automakers, such as Tesla and China’s BYD. However, he did not mention what has been dragging the deal finalization and the incentives prepared. What we’ve heard A source in the government said that the difficulties in Tesla's investment plan to build an electric vehicle manufacturing facility in Indonesia was because the company owned by Elon Musk wanted to ensure that the nickel used as raw material for the batteries did not come from illegal mining. The source said that, apparently the illegal mining of nickel around Morowali and Konawe had caught Tesla's attention. The company then put forward conditions: it only wants to invest and build a car factory in Indonesia if the raw materials for the batteries don't come from illegal mining. That's why the lobbying team from the Ministry of Maritime Affairs and Investment ensured to Tesla that the battery raw materials to develop the EV ecosystem in Indonesia were all mined legally. If Tesla does invest in Indonesia, said the source, they will build electric vehicles to target emerging markets. They will set a price for an electric vehicle that is quite competitive with the price of the Wuling Air EV. This approach was taken because Tesla realized that the price of the electric cars they have been producing so far is too expensive for most consumers in Indonesia and other Southeast Asian countries. However, another source said that Tesla's investment plans in Indonesia could still change. A source at BKPM said that the team from the Maritime Affairs and Investment Ministry had lobbied for Tesla to enter Indonesia, without involving other ministries or institutions. That is why many officials at BKPM admit that they are not aware of Elon Musk's plans to invest in building factories in Indonesia. They only found out about the plan after Maritime Affairs and Investment Coordinating Minister Luhut Panjaitan conveyed it at the regional head coordination meeting recently. Source: https://www.thejakartapost.com/opinion/2023/01/25/analysis-ris-long-journey-to-attract-tesla-gigafactory.html

Freeport Indonesia’s copper output in 2023 is seen at about 1.6 billion pounds (725,748 tonnes), about the same level as last year, company chief executive Tony Wenas said on Tuesday.Gold output, estimated at about 1.8 million ounces, rose about 12.5% compared to 1.6 million ounces produced last year, Wenas told reporters.Source: https://www.mining.com/web/freeport-indonesia-targets-2023-copper-ore-output-at-1-6-billion-lbs-ceo/

Indonesia's foreign direct investment surged 44.2% on a yearly basis in 2022, with the base metals sector drawing in the biggest inflows, the investment minister said on Tuesday, noting 2023 would be a more difficult year to attract investment. Southeast Asia's largest economy received 654.4 trillion rupiah worth of FDI last year, or equivalent to $45.6 billion in the investment ministry's official calculation, which assumes an exchange rate of 14,350 to the dollar.The resource-rich country has been trying to capitalise on its abundant nickel reserves to develop battery and electric vehicle industries at home. Once a major exporter of nickel ore, it stopped outbound shipments of the raw material in 2020 to make sure investors have enough for domestic processing.Foreign direct investment in base metals and mining reached $11 billion and $5.1 billion, respectively, last year, the biggest recipients of FDI. The biggest sources were Singapore, China and Hong Kong. Total investment, including from domestic sources, reached 1,207.2 trillion rupiah ($81.02 billion), he said, roughly in line with the government's target. This year's investment target is 1,400 trillion rupiah.Source: https://www.reuters.com/markets/asia/indonesias-fdi-jumps-2022-led-by-mineral-processing-2023-01-24/

PT United Tractors Tbk (UNTR) will channel a loan of IDR 4 trillion to its subsidiary, PT Pamapersada Nusantara (PAMA).Sara K. Loebis, Corporate Secretary of UNTR, revealed that the facility will be available for withdrawal until December 16, 2023. “The company and PAMA signed the addendum of the initial agreement yesterday (19/1), agreeing on the availability of the funds throughout last year,” she added, as quoted Tuesday (23/1).Said loan is equipped with an interest rate of JIBOR + 3.2% per year. The facility will be used to enhance PAMA’s working capital. The parties agreed that this facility will bring more benefits for PAMA compared to the third party.UNTR controls 99.99% of PAMA, while PT United Tractors Pandu Engineering claims another 0.005%. (LK/ZH)Source: https://www.idnfinancials.com/news/45757/untr-sets-idr-loans-pama

Gold mining company J Resources Asia Pasifik Tbk (PSAB) has teamed up with Deloitte Consulting as a partner in an effort to improve technology infrastructure and encourage innovation when entering a new growth phase with digital transformation. Regent Chowin, Head of System & Information Management at PT J Resources Nusantara, said that with Oracle Cloud ERP, Oracle Cloud EPM, and Oracle Cloud HCM, he is trying to streamline business operations, gain deeper financial insights, and position the company for expansion into the new era. new."Cloud-led transformation is critical for our organization to scale operations quickly, drive innovation, create a real-time view of all our resources and projects, ensure cost efficiencies, and implement strong security measures for business continuity." Regent Chowin in a written statement in Jakarta, Tuesday.J Resources Asia Pasifik Tbk (J Resources) is an Indonesia-based holding company listed on the Indonesia Stock Exchange. The company operates, mines, explores and invests in the gold mining sector through its subsidiary J Resources Nusantara. Regent Chowin said that after evaluating applications from multiple vendors and technologies, J Resources chose Deloitte and Oracle Cloud ERP because of their ability to provide a comprehensive view of data from every part of their business, while gaining the critical insights needed to improve their accounting processes.It was explained that it chose Oracle Cloud EPM to improve financial planning, forecasting and execution. In addition, the artificial intelligence and machine learning capabilities built into the Oracle Fusion Cloud Applications Suite will allow J Resources to reduce time spent on administrative processes so they can focus on more strategic and innovative work. J Resources has also selected Oracle Fusion Cloud Human Capital Management (HCM) to automate its human resources (HR) systems and help improve business processes.The deployment will provide enterprises with scalable, cloud-based technologies to help streamline processes and leverage data to plan, manage, and optimize people's processes with one common data source. Along with implementation, J Resources is on the right track to digitize human resource processes and improve HR workflow.Source: https://www.antaranews.com/berita/3362595/j-resources-gandeng-deloitte-consulting-percepat-transformasi-digital

PT Kobexindo Tractors Tbk ( KOBX ), an integrated heavy equipment provider, posted sales growth of 41% in 2022 to US$ 168.5 million, compared to sales in the previous year of US$ 119.3 million. This figure is a provisional figure and is still awaiting the results of the audit (unaudited). This growth was contributed by sales of mining and non-mining heavy equipment marketed by KOBX. The sales result is also KOBX's highest achievement in the last five years."This achievement is inseparable from our strategy to optimize sales of heavy equipment units, both mining and non-mining, which are in our business segment," said Martio, Deputy Main Director of Kobexindo Tractors in a press release received by Kontan, Monday (23/1). The high demand for KOBX heavy equipment cannot be separated from the high prices of mining commodities which started in 2021. In 2022, despite adjustments to commodity prices, the prevailing prices will still benefit mining owners to increase production quotas to meet demand for mining materials.The improvement in the economy after the Covid-19 pandemic which led to easing of activities while still paying attention to health and safety procedures was also a positive catalyst for KOBX's performance growth.  "This triggers the mining, industrial, logistics and construction business sectors which are our target markets," explained Martio. Throughout 2022, KOBX Management recorded several points that must be considered in order to sustain sustainable growth in 2023 and the coming years, especially those related to the supply of heavy equipment units.These include the production capacity of heavy equipment manufacturers, the price of heavy equipment raw materials such as steel, limited fleets and increased logistics or transportation costs to meet demand spikes, levels of consumer demand, increases in benchmark interest rates, fluctuations in the exchange rate of the US dollar against the rupiah, and the threat of impact. global recession.KOBX has taken anticipations such as an inventory strategy by projecting customer orders in the next few months, securing heavy equipment supply as has been done with Doosan and NHL Terex, Mercedes Benz, as well as a pricing strategy. KOBX is optimistic that business growth in 2023 will continue the growth momentum of previous years. This is supported by sales of superior product lines that are reliable and have a high level of efficiency."In addition, we are supported by after-sales service and the availability of spare parts at 13 points of the company's branch offices so that we can provide the best for our customers," said Martio. To support its growth strategy in 2023, KOBX has prepared a capex of US$ 4 million to support operations and rejuvenation of heavy equipment rental units.  In addition, KOBX has prepared several new products to be introduced in 2023 to strengthen its product line, both mining and non-mining heavy equipment.Source: https://industri.kontan.co.id/news/kobexindo-tractors-kobx-raih-kenaikan-penjualan-alat-berat-41-pada-2022

PT Indika Energy Tbk ( INDY ) is targeting coal production of 32.8 million tons throughout 2023. The majority of this coal production comes from PT Kideco Jaya Agung (Kideco). "In 2023, the coal production target is 32.8 million tonnes, of which 31 million tonnes will come from Kideco and 1.8 million tonnes from Multi Tambangjaya Utama (MUTU)," said Indika Energy's Head of Corporate Communication , Ricky Fernando to Kontan. co.id, Friday (20/1). According to Kontan.co.id's previous records, Indika Energy has set a coal production volume in 2022 of 34 million tonnes. This means that when compared to the target in 2023 there is a decrease in coal production volume of 3.52% year on year (yoy).  Citing the results of financial reports until the end of September 2022, INDY recorded revenue growing by 57.2% yoy to US$ 3.13 billion driven by higher coal prices with the average ICI-4 benchmark increasing to US$ 84.6/ tons or higher 51.1% yoy. Kideco's revenue grew by 49.1% yoy to US$ 2.21 billion at the end of September 2022 driven by a higher average selling price, which rose 55.4% yoy to US$ 84.2/ton.  At the end of September 2022 Kideco sold 26.3 metric tons of coal by volume, down 4.1% yoy. However, INDY's management stated that, despite the decline, this realization was still in line with the 2022 production target of 34 million tons with 72% volume for exports and 28% for the domestic market.In the 9 month period of 2022, Indika Resources revenue increased 113.3% yoy to US$ 628.4 million driven by higher average selling price (ASP) at Multi Tambangjaya Utama (MUTU) and coal trading . On the other hand, coal trading volume is also higher.  In detail, MUTU's revenue rose 119.0% yoy to US$ 231.1 million, due to an increase in ASP of 129.9% yoy to US$ 193.3/ton, with sales volume of 1.2 million tonnes of coal. This realization decreased by 4.9% due to the export ban in January 2022 and several other challenges experienced in transportation.Coal trading revenue at the end of September 2022 jumped 110.0% yoy to US$ 397.3 million, supported by an increase in ASP of 58.5% yoy to US$ 75.3/ton and 32.4% increase in annual volume to 5.2 million tonnes. The gross profit rose 109.1% yoy to US$ 1.08 billion and the consolidated gross profit margin increased to 34.7% from 26.1% in the same period last year, mainly driven by higher coal prices. Operating income jumped 120.1% yoy to US$ 935.3 million and operating margin increased to 29.8% from 21.3%.  Through this increase in revenue, INDY posted profit attributable to company owners of US$ 338.4 million from a net loss of US$ 6.0 million at the end of September 2021. Source: https://industri.kontan.co.id/news/indika-energy-indy-bidik-produksi-batubara-328-juta-ton-pada-2023

PT Pertamina (Persero) is ready to develop an electric vehicle (EV) battery ecosystem in Indonesia by optimizing nickel reserves. "We are confident that with nickel reserves in Indonesia, we can produce batteries and increase EV penetration," said PT Pertamina Main Director Nicke Widyawati at the Indonesian Pavilion, World Economic Forum in Davos, Switzerland, as quoted from a written statement received in Jakarta, Sunday.According to him, Pertamina has infrastructure that can be optimized for EV penetration and has segmentation data on characteristics, mobility and purchasing power. Apart from that, Pertamina also has more than 7,400 gas stations, 6,100 Pertashops, and 63,000 LPG outlets. Pertamina is also ready to collaborate with other parties from various countries to develop EV batteries and optimize its infrastructure. This commitment is also in line with the recommendations put forward by the Business 20-Task Force Energy, Sustainability, and Climate/B20-TF ESC, one of which is proposing policy recommendations to accelerate the development of the electric vehicle (EV) ecosystem. "We propose several policy recommendations and policy actions, especially how to accelerate EV penetration in each country," said Nicke, who also served as Chair of the B20-TF ESC during the G20 in 2022. In the event entitled "Indonesia Economic Development Through Downstream Industries and Inclusive Partnership", Nicke revealed the policy recommendations, including accelerating the use of sustainable energy, ensuring a fair and affordable transition, and increasing energy security.To accelerate the use of sustainable energy, he said, Pertamina is targeting energy efficiency with electrification to be a determining factor for success. "There are demand-side energy efficiency targets, how to manage demand-side energy efficiency and we believe electrification is a key success factor," he said.In addition, he also highlighted the need for financing, especially from developed countries, bearing in mind that the energy transition to renewable energy requires enormous capital investment so investment support is needed from developed countries. Next, the second policy recommendation, namely the need to ensure a fair and affordable transition. In this recommendation, he highlighted the need to prepare for a just transition from the sectors affected by the energy transition to related sectors.He mentioned the need to ensure sustainable practices in accessing minerals to build new energy infrastructure that is clean and low carbon, including electric vehicles. The third recommendation is the need to increase energy security. "We need frameworks and regulations such as incentives to promote and accelerate the EV ecosystem," he said. B20-TF ESC is a business community that supports the G20 with impactful and actionable policy recommendations from a business perspective. B20-TF ESC has more than 150 members, with eight co-chairs selected from several countries with different types of energy.Meanwhile, the Minister of Investment//Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the development of the EV ecosystem in Indonesia had started by involving foreign companies and BUMN, including Pertamina. There are at least four companies that have investment plans in Indonesia to support EV development, namely LG, CATL, Foxconn and BritishVolt. According to Bahlil, the government welcomes serious investors coming to Indonesia by providing easy licensing facilities and tax incentives.Source: https://www.antaranews.com/berita/3360303/pertamina-siap-kembangkan-ekosistem-baterai-ev-dengan-optimalkan-nikel

PT Intraco Penta Tbk ( INTA ) allocates Rp 84 billion for capital expenditure for 2023. INTA Corporate Secretary Astri Duhita Sari revealed that most of the capital expenditure funds were used to purchase heavy equipment. "(This) is for the renewal of the rental fleet ," explained Astri to Kontan, Wednesday (11/1). Astri added, until the end of 2022 the company estimates that sales will reach IDR 643 billion. The mining sector, especially coal and nickel, is the main support for heavy equipment sales by INTA for 2022.As an illustration, until the third quarter of 2022 INTA posted sales of IDR 497.16 billion. This achievement increased 12.01% year on year (YoY) from the same period in the previous year which amounted to IDR 443.78 billion. In addition, INTA recorded total assets of IDR 2.38 trillion, or a decrease of 2.4% compared to total assets in 2021 of IDR 2.44 trillion. On the other hand, INTA also recorded a comprehensive net loss until the third quarter of 2022 of IDR 99.56 billion. Astri confirmed that this year the company is targeting an increase in sales.   "For 2023, it is projected that total sales will be Rp 1.2 trillion," said Astri. The coal and nickel mining sector will still be one of the main pillars for heavy equipment sales this year.Source: https://industri.kontan.co.id/news/sektor-tambang-batubara-dan-nikel-jadi-penopang-utama-penjualan-alat-berat-inta

The Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia is ready to oversee Siemens Energy's investment in Indonesia, particularly in the energy transition sector. In his meeting with the President and CEO of Siemens Energy, Dr. Ing-Christian Bruch on the sidelines of the 2023 World Economic Forum in Davos, Switzerland, Tuesday (17/1), Bahlil emphasized Indonesia's current commitment to transitioning energy towards green energy, in line with the increasing demand for green energy at the global level."I give Siemens Energy the greatest appreciation for all our cooperation so far, especially regarding the energy transition, we have abundant natural resources such as wind, solar and water, as well as a large enough area that can be utilized as much as possible," he said in a statement. statement in Jakarta, Thursday. Siemens Energy Global Gmbh Co.KG has signed an MoU with PT Multi Fabrindo Gemilang (Multifab) for investment cooperation in the energy transition sector, which was carried out on the sidelines of the G20 activities in Bali on 10 November 2022.Siemens Energy's investment value is estimated at € 70-100 million or equivalent to IDR 1 trillion - IDR 2 trillion. On that occasion, Bahlil also offered investment opportunities for the solar panel equipment industry to Siemens Energy. He said Indonesia has abundant raw materials at competitive prices, and the final product can be marketed both in the domestic market and for export.CEO of Siemens Energy Dr. Ing-Christian Bruch said that Indonesia is an important country for Siemens Energy. Therefore, his party wants to further optimize the investment opportunities that exist in Indonesia. Christian also appreciates the support that has been given by the Government of Indonesia to Siemens Energy and is committed to not only seeking business opportunities for the Indonesian domestic market but also for export purposes."We want to contribute to Indonesia's development, especially in relation to the green energy transition. Indonesia is the largest economic power in Southeast Asia, especially related to energy. We will develop a roadmap for cooperation between Siemens Energy and the Government of Indonesia in pushing for the energy transition and how in the future we can create an energy source that is not only environmentally friendly but also affordable to the wider community," said Christian.Siemens Energy is a business division of global technology company Siemens that focuses on products and solutions in the fields of energy generation, transmission and distribution. With this collaboration, in the future Indonesia can become a driver of the energy transition in the Asia-Pacific region as a producer to serve the domestic market and neighboring countries.Source: https://www.antaranews.com/berita/3355791/bahlil-siap-kawal-investasi-siemens-energy-dukung-transisi-energi