With this in mind, the Indonesian government is also encouraging investment in downstream nickel derivative products for producing electric vehicle batteries, he pointed out.
"With such large (nickel reserves), we can see that Indonesia has a strong bargaining position," he said while delivering a lecture as part of the 61st National Defense Institute (Lemhanas) National Strategic Issues Field Visit Briefing on Thursday, according to a statement received here on Friday.
With such a strong bargaining position, Indonesia has the right to establish development and mutually beneficial cooperation, the minister added.
By 2025, Indonesia is projected to account for 50 percent of the world's nickel supply compared to 28 percent in 2020, he pointed out while making the online presentation.
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“Indonesia’s nickel production will increase with the presence of a High Pressure Acid Leaching (HPAL) smelter that will start operating in 2021, which will produce Mix Hydroxide Precipitate (MHP)," Pandjaitan informed.
In addition, seven industrial areas are expected to start developing nickel as well as bauxite derivative products by 2021-2022, the minister said.
They include the Galang Batang area, built with an investment of US$2.5 billion, which is expected to become operational this year; the North Morowali industrial area, built with an investment of US$4.19 billion, which is targeted to become operational in the fourth quarter of 2021; and, the Tanah Kuning industrial area, with a total investment value of US$60 billion that will be disbursed in stages, which will likely become operational in 2022, he added.
Meanwhile, Indonesia Morowali Industrial Park (IMIP) and Indonesia Weda Bay Industrial Park are being built at an investment of US$10 billion each, Pandjaitan said.
Building such integrated industrial areas will bring down production costs, he added.
The government is currently focusing on five areas — downstreaming natural resources, developing lithium batteries, the health sector, maritime connectivity infrastructure, and reducing carbon emissions, Pandjaitan said. (INE)
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