Reporter: Yudho Winarto | Editor: Yudho Winarto
KONTAN.CO.ID - JAKARTA. Downstreaming is the key word to promote the value of a product. It is not surprising, therefore, that the President and Government continue to drive each industry producing raw materials in Indonesia, to be committed in considering the downstreaming of its derivative products. The downstreaming of products is believed to be able to strengthen industry structure, provide job opportunities and business prospects in Indonesia.
This also applies to MIND ID or Mining Industry Indonesia, the Holding State-Owned Enterprise for the Mining Industry, with members PT Antam Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero), PT Timah Tbk, to also be committed to make the Government’s Downstreaming Program a reality.
MIND ID’s President Director, Hendi Prio Santoso, said that “MIND ID has three mandates from the Government, namely, manage strategic reserves and resources, downstreaming and becoming the market leader, through the optimizing of mineral commodities and business expansion.”
SOE Minister, Erick Thohir stated, "Indonesia has abundant mining resources, and we continue to industrialize the mineral and coal industry to increase industrial value. On the other hand, Indonesia is also a producer and exporter of nickel, the main raw material for EV batteries. The world's largest nickel supplying 27 percent of global market demand."
SOEs always innovates business models in this industry and improves the chain of all our resources, continued Erick Thohir.
"We have established the Indonesia Battery Corporation (IBC), which focuses on developing a comprehensive EV Ecosystem from exploration & processing of nickel as an electric battery component to EV production and battery recycle. In addition, we want to attract strategic partners to collaborate and create more value for the industry. With foreign investment in this industry, I believe that we can improve the sustainability of the industry and become more competitive in the global market. The MOU between MIND ID and Arrival is just option we try to collaborate with strategic partners to create more value," he explained.
MIND ID as the Holding State-Owned Enterprise of the Mining Industry continually commits to drive the added value of each mining product, this time, in the aluminium and nickel industry. Aluminium and nickel are key components in the development of the electric vehicle industry.
The electric vehicle industry is presently one of the solutions to reduce global emissions which continue to accelerate. The transportation sector is one of the contributors to the substantially high emissions. It is a fact that the electric vehicle is an environmentally-friendly transportation alternative, as these vehicles do not produce emissions which can pollute the air.
This commitment has been declared as one of the three main pillars of the G20 Presidency in Indonesia, namely, (i) Global Health Architecture; (ii) Digital Transformation; (iii) Equitable Energy Transition.
“Accelerating the presence of electric vehicles in Indonesia is in line with MIND ID’s sustainability pathway and also aligned to the Sustainable Development Goals, particularly the climate action pillar,” Hendi added.
Therefore, G20 countries shoulder the big responsibility and strategic role in driving the use of clean energy. This means focusing on energy security, access and efficiency, as well as transitioning to low carbon energy system, including investment and innovation in cleaner and more efficient technology.
The downstreaming and energy transition program has become the priority of the Government to be immediately realized. This seriousness is shown by MIND ID with the visit to the UK in May 2022 and the signing of the Memorandum of Understanding with Arrival UK Ltd as partner to seek potential supply solutions, as well as discuss the design and development of electric vehicles.
This initiative is part of MIND ID’s efforts in exploring the opportunity for development of a commercial electric vehicle Microfactory in Indonesia and Southeast Asia.
In the context of the strategic cooperation spirit contained in the Memorandum of Understanding, MIND ID has appointed PT Industri Baterai Indonesia (IBC) to implement the Memorandum of Understanding, including the joint feasibility study with Arrival UK Ltd. covering Market Study and Project Feasibility to explore electric vehicle business expansion in Southeast Asia and associated supply chain opportunities.
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The appointment of IBC to implement the Joint Development Agreement was signed on 30 September 2022 at the time of MIND ID’s visit, with MIND ID represented by President Director Hendi Prio Santoso, and Institutional Relations Director Dany Amrul Ichdan, together with officials from the Ministry of State-Owned Enterprises.
Subject to the results of the feasibility study, MIND ID and Arrival UK Ltd plan to explore the possibility for further collaboration to jointly introduce Microfactories for Commercial EVs within Indonesia and the wider Southeast Asia region.
The possible opportunity for construction and investment of Arrival UK Ltd Microfactories within the region, supports the program of the government in attracting foreign investors to invest in the country.
“The potential cooperation between MIND ID and Arrival UK Ltd could contribute to the downstreaming of the aluminium and nickel industry development in Indonesia. Support and synergy are necessary to accelerate the realization of the program, one of which would be in the form of government policy and ease for the electric vehicle ecosystem in Indonesia,” concluded Hendi.
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