Indonesia Expands $12.4 Billion Nickel Push via Danantara, MIND ID as Chinese Smelters Pull Back
Updated
Updated · Asia Times · Jul 24
Indonesia Expands $12.4 Billion Nickel Push via Danantara, MIND ID as Chinese Smelters Pull Back
3 articles · Updated · Asia Times · Jul 24
Summary
Danantara and MIND ID are taking a larger role in Indonesia’s nickel industry as Chinese investors warn over policy uncertainty and some smelters curb output or freeze expansion.
Danantara has lined up 26 downstream projects worth about $12.4 billion and signed 2025 nickel partnerships with France’s Eramet and China’s GEM, while MIND ID became PT Vale Indonesia’s controlling shareholder with a 34% stake.
The strategy targets the midstream—battery materials, chemicals, recycling and engineering—where Indonesia remains weak even though these stages capture more value and skilled jobs than mining or basic smelting.
That gap is visible in demand: 85% to 95% of Indonesia’s advanced battery-system needs are still imported, and 60% to 70% of that import value comes from China.
The urgency is rising because roughly 90% of Indonesia’s 43,000 recent EV sales used nickel-free LFP batteries, leaving the country exposed after expanding ferronickel output into a market with weakening battery demand.