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CNN —A plan to build a multi-billion dollar Chinese glass factory in Indonesia’s Riau Islands Archipelago has sparked fierce protests from indigenous islanders who are opposed to their villages being torn down. Riot police were deployed to the scene and fired tear gas and water cannons at protesters, CNN affiliate CNN Indonesia reported. On Rempang island, chaos broke out on September 7 when local authorities and developers showed up to conduct land surveys and take measurements. BP BatamIn a bid to soothe tensions, Indonesian government officials have promised improved relocation packages for residents on Rempang. Relocation and compensation only have economic value and cannot replace the villagers’ collective memory and identity as local indigenous people,” said Arifin Jaynal Ylbhi, spokesperson for the Indonesian Legal Aid Foundation (YLBHI).
Persons: Joko Widodo, Xi Jinping, , , Muhammad Rudi, Investment Bahlil Lahadalia, Arifin Jaynal Ylbhi, Hong Kong, Ansar Ahmad, Didit Wicaksono, Widodo, Nur, Sophie Grig, Bahlil Organizations: CNN, Badan, BP, Riot, CNN Indonesia, Government, Investment, Indonesian Legal Aid Foundation, Ford, General Motors, Volkswagen, Greenpeace, Veteran National Development University of Jakarta, Survival, CNN Indonesia . Investment Locations: Riau, Indonesia, Southeast, Batam, Singapore, Rempang, Hong, Malay, ” Riau, Greenpeace Indonesia, West Papua, Jakarta, CNN Indonesia
JAKARTA, May 3 (Reuters) - Indonesia has cut tax incentives to limit investment in lower quality nickel products as it aims to extract as much value as possible from its rich nickel reserves and push for further downstream investment, a cabinet minister said on Wednesday. Investment Minister Bahlil Lahadalia said the government will no longer provide tax holidays for investment into NPI. "Downstreaming must at least reach 60% to 70% nickel content in Indonesia and not only for intermediate products," Bahlil said in an interview with Reuters. The International Nickel Study Group (INSG) is forecasting a surplus of 239,000 tonnes, the largest in at least a decade. Merdeka currently has capacity of 38,000 tonnes of NPI and a third smelter with 50,000 tonnes capacity is expected to start operations in the second half of the year.
[1/2] Indonesia's Investment Minister Bahlil Lahadalia gestures during an interview at his office in Jakarta, Indonesia, May 3, 2023. REUTERS/Ajeng Dinar UlfianaJAKARTA, May 3 (Reuters) - Indonesia's investment minister said on Wednesday that copper miner Freeport Indonesia must agree to sell an additional 10% stake to the government, as negotiations get underway for the U.S. company to extend its permit to operate in the country. "We ask for Freeport's 10% divestment through a state company for as cheap as possible. The $3.85 billion that Indonesia invested in the miner in 2018 via a state company has proven beneficial for the country, and the government expects to break even on that deal next year, he said. Freeport Indonesia said it produced 3 million tonnes of copper concentrate in 2022, an annual record.
JAKARTA, May 3 (Reuters) - Indonesia has cut tax incentives to limit investment in lower quality nickel products as it aims to extract as much value as possible from its rich nickel reserves and push for further downstream investment, a cabinet minister said on Wednesday. Since banning nickel ore exports in 2020, Indonesia has seen a surge in investment into smelters but most output is ferronickel or nickel pig iron (NPI), used in stainless steel, that typically only contains 30% to 40% of nickel. Investment Minister Bahlil Lahadalia said the government will no longer provide tax holidays for investment into NPI. "NPI investment can reach break even in four to five years, why would we give 10-year tax holidays? Merdeka currently has capacity of 38,000 tonnes of NPI and a third smelter with 50,000 tonnes capacity is expected to start operations in the second half of the year.
JAKARTA, April 17 (Reuters) - Volkswagen will build an electric vehicle (EV) battery ecosystem in Indonesia and will partner with miner Vale, Ford and China's battery minerals producer Zhejiang Huayou Cobalt, the Southeast Asian country's investment minister said. Minister Bahlil Lahadalia said on Sunday that Volkswagen, Europe's biggest automaker, will work with Vale, Ford, Huayou, French miner Eramet and several Indonesian firms such as Merdeka Gold Copper, the parent company of Merdeka Battery, and energy firm Kalla Group. Volkswagen, Ford, Eramet, Kalla Group, Huayou, and Merdeka Gold Copper did not immediately respond to requests for comment. PT Vale Indonesia declined to comment. Last month, Ford (F.N) inked its first investment in Indonesia by joining Vale Indonesia and Huayou in a $4.5 billion nickel processing plant in Southeast Sulawesi.
JAKARTA, April 17 (Reuters) - Volkswagen will build an electric vehicle (EV) battery ecosystem in Indonesia and will partner with miner Vale, Ford and China's battery minerals producer Zhejiang Huayou Cobalt, the Southeast Asian country's investment minister said. Minister Bahlil Lahadalia said in a video statement Volkswagen, Europe's biggest automaker, will work with Vale, Ford, Huayou, French miner Eramet and several Indonesian firms such as Merdeka Gold Copper, the parent company of Merdeka Battery, and energy firm Kalla Group. Volkswagen, Ford, Eramet, Merdeka Battery, Kalla Group, Merdeka Gold Copper did not immediately respond to requests for comment. PT Vale Indonesia declined to comment. Last month, Ford (F.N) inked its first investment in Indonesia by joining Vale Indonesia and Huayou in a $4.5 billion nickel processing plant in Pomalaa in Southeast Sulawesi, where Vale operates a nickel mine.
[1/2] A logo is seen on the facade of the BASF plant and former Ciba production site in Schweizerhalle near Basel July 7, 2009. Indonesia's investment ministry cited BASF chief executive Martin Brudermüller as saying the project investment would be worth around 2.4 billion euros ($2.59 billion). Eramet spokeswoman Fanny Mounier said the project was subject to a final investment decision and further details would be disclosed if a decision was made. The planned plant would produce mixed hydroxide precipitate (MHP) from nickel through a high-pressure acid leach (HPAL) plant. Investment into MHP production in Indonesia has so far been dominated by Chinese companies such as Zhejiang Huayou Cobalt and Tsingshan Holding Group.
JAKARTA, Jan 18 (Reuters) - Germany's BASF (BASFn.DE) and French miner Eramet (ERMT.PA) are finalising a $2.6 billion partnership deal to invest in a facility in Indonesia to process nickel for use in batteries for electric vehicles, Indonesian officials said. The project investment would be worth around 2.4 billion euros ($2.59 billion), the investment ministry said, citing BASF chief executive Martin Brudermüller. BASF and Eramet's investment plan was in line with the government's "aspirations to set up Indonesia as world-class EV player," said Investment Minister Bahlil Lahadalia. Indonesia is also finalising agreements with Chinese automaker BYD Group and Tesla (TSLA.O) to invest in EV production facilities, a senior cabinet minister said on Tuesday. Investment into MHP production in Indonesia has so far been dominated by Chinese companies such as Zhejiang Huayou Cobalt and Tsingshan Holding Group.
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