By Romel S. Gurky
Indonesia's sovereign wealth fund Danantara Indonesia, the Indonesian Investment Authority (INA), and French mining group Eramet on Wednesday signed a memorandum of understanding (MoU) to explore the creation of a strategic investment platform in Indonesia’s nickel sector, covering upstream to downstream operations.
The agreement was signed at the State Palace in Jakarta and witnessed by Indonesian President Prabowo Subianto and French President Emmanuel Macron during the latter’s state visit.
This partnership aims to develop a sustainable and integrated electric vehicle (EV) battery raw materials ecosystem in Indonesia. The parties will conduct a preliminary assessment to identify the most suitable project to maximize the potential of the national EV ecosystem, while also preparing a roadmap for future collaboration. In implementing this cooperation, the parties agreed that asset management must not only prioritize efficiency and economic value, but also adhere to strict international standards.
Chief Investment Officer of Danantara Indonesia Pandu Sjahrir, believes that this partnership will strengthen Indonesia’s position as a global hub in the EV battery supply chain.
Pandu explained that in this partnership, Danantara Indonesia and INA will manage long-term financing to support investment development, while Eramet will contribute through its technical expertise and experience in executing large-scale mining projects in line with international sustainability standards.
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“This partnership reflects the commitment of all three parties to drive world-class nickel downstream investment in Indonesia, which is one of the key pillars in strengthening the competitiveness of the national industry. This collaboration also integrates global-level technical capabilities in environmentally conscious mining that supports the development of a sustainable industry,” Pandu said in a statement.
Chairman of the INA Board of Directors, Ridha Wirakusumah, welcomed the partnership and stated that this initiative is an important step in strengthening Indonesia’s critical minerals supply chain and downstream sector, particularly nickel, in line with INA’s investment focus in the mineral and downstream industries.
“The strategic collaboration between Eramet, Danantara Indonesia, and INA combines technical excellence and a global track record in sustainable mining management with the design of long-term financing structures to support industrial growth. This synergy reflects a collective commitment to building a value-added industrial foundation within the country and attracting high-quality investments into Indonesia’s strategic sectors,” said Ridha.
“With a long-term commitment in nickel in Indonesia since 2006, Eramet has significantly contributed to the development of Indonesia’s largest nickel deposit over the past years,” Eramet Group Chief Executive Officer Paulo Castellari said.
Eramet has been actively present in Indonesia since 2006 through its nickel mining operations in Weda Bay, Maluku. Demonstrating its continued commitment to sustainable development, the company also marked a milestone in 2024 by partnering with Indonesia’s Geological Agency to initiate studies and exploration of critical minerals—including lithium—as part of its support for the country’s energy transition goals.
“With a clear focus on downstream processing, energy transition, and critical minerals, Danantara Indonesia and INA’s priorities are well aligned with Eramet’s strategic ambitions in Indonesia. We have been investigating opportunities to participate in the nickel EV battery value chain in Indonesia and we welcome today’s initiative. We are ready to contribute through our sustainable mining expertise and long-term commitment to developing strategic industries in the country”, added Paulo.
Editing by Reiner Simanjuntak
