Get to know the Nickel Investment Opportunities in Indonesia

 

Nickel is one of the metal materials that is often used to make various equipment with a more elastic character than other types of metal, so that nickel will be more easily formed into various shapes. But even though it is flexible, nickel still has sturdy and strong properties.

Nickel is very useful for everyday life. Nickel is a metal that is widely used in the manufacture of various industrial products. Starting from the automotive industry, electronics, to use in the military, aerospace and marine fields. Products that use nickel have their own advantages. Nickel is a metal material that is corrosion resistant so that it can prevent the process of forming a surface layer due to contact with air. In addition, nickel also has the ability to conduct heat and electricity well.

Then, what are the opportunities for nickel investment in Indonesia? To answer this there are several things that will be conveyed, namely:

1.   Indonesia's Nickel Reserves

Based on the mapping of the Geological Agency in July 2020, Indonesia has nickel ore resources of 11,887 million tons (inferred 5,094 million tons, indicated 5,094 million tons, measured 2,626 tons, hypothetical 228 million tons) and ore reserves of 4,346 million tons (proven 3,360 million tons). and approximately 986 million tonnes). Meanwhile, the total metal resources reached 174 million tons and 68 million tons of metal reserves.

2.   Online Single Submission (OSS)

Ease of doing business in issuing business licenses, where the business licensing system is electronic and integrated using data sharing. OSS simplifies and streamlines the licensing process of related sectors.

3.   Fiscal Ease

There are fiscal facilities, in the form of import duty facilities, tax allowances, tax holidays, and regional incentives provided by the local government based on their authority.

4.   Ease of Access and Infrastructure

Industrial areas have been built, such as the Morowali Industrial Estate (Morowali, Central Sulawesi), Konawe Industrial Estate (Konawe, Southeast Sulawesi), Weda Bay Industrial Estate (Halteng, North Maluku)

5.   Mining Environmental Protection Standard

Mining Environmental Protection Standards have been issued with the issuance of Law Number 32 of 2009 concerning Environmental Permits and Other Supporting Permits, Law Number 3 of 2020 concerning Reclamation and Post Mining, Law Number 41 of 1999 concerning Borrow-to-Use Permits for Forest Areas

6.   Indonesian Investment Indicators

Indonesia has received investment grade from the world rating agency 2019 Moody'2 Fitch Rating and S&P Global Ratings, Top 18 FDI inflow, Top 20 Prospective Host Economy 2018-2019 (UNCTAD, 2020), Top 2 Geographical Distribution of Loans and Commitments to Equity Participation in Asia (JBIC, 2019), Rank #50 Global Competitiveness Index (World Economic Forum, 2019) Rank #73 Ease of Doing Business (World Bank, 2020).

With high mineral potential, especially the largest nickel reserves in the world (52%) meaning that Indonesia plays an important role in the supply of world nickel raw materials and with an increasing investment attractiveness index rating, Indonesia is an attractive country to do development is an investment destination in the mining sector, particularly nickel mining.