Orient Futures International (Singapore)’s Post

Indonesia’s plan to establish an alliance among nickel-producing countries faces significant hurdles with geopolitical and geoeconomic challenges appeared to be undermining this ambitious agenda. Although Indonesia’s bid for an OPEC-style nickel alliance is facing roadblocks, the country inadvertently has acted as an OPEC of nickel itself. Indonesia's emergence as the dominant player in global nickel production, contributing 50 percent of total output last year, has reshaped the industry's dynamics. Even without a formal cartel, Indonesia has significant leverage to influence global nickel prices due to its substantial market share. Find out more about my latest thoughts on Indonesia's bid for a nickel alliance in today's edition of The Jakarta Post https://lnkd.in/gpscgsYV

In this latest #JustaMinute, Alexandra Symeonidi, CFA, delves into the significant expansion of nickel production in Indonesia following the 2020 export ban, its impact on global supply and prices, and the potential market effects of Indonesia's recent policy changes on nickel smelting permits. Watch now!

Watch CRU experts Frank Nikolic, Nikhil Shah, and Angela Durrant delve into an insightful discussion about Indonesia's dominance for #nickel supply in this new CRU insight. In this short video, Angela shares her observations from travelling throughout Indonesia's nickel hub in Morowali and understanding the factors driving the country's rise as a strategic nickel supplier. Watch the video here: https://ow.ly/zUPf50SqHSU #Commodities #MiningAndMetals

Industry News Indonesia aiming to cut nickel industry dependence on China investments Indonesia is seeking to reduce Chinese companies' participation in newly established nickel mining projects to comply with the conditions for obtaining tax exemptions from the U.S. government. Indonesian officials are in discussions with investors to limit the shareholding of Chinese enterprises to below 25% in the new nickel smelting plant project. Septian Hario Seto, a Deputy Coordinating Minister for Maritime and Investment Affairs, confirmed this fact, stating that the decision is not only based on meeting U.S. tax requirements but also aims to diversify investment sources. Seto emphasized, “This is an important policy because we do not want to be trapped in geopolitical tensions. We must safeguard national interests.” News Source: https://lnkd.in/gEwZkQva #IndustryNews #Indonesia #NickelIndustry #China #US #StainlessSteel #Krogman #KrogmanNorthAmerica #StainlessSteelSolutions

My article (Kor & Eng) is released: "South Korea’s Strategy for Indonesia: Building a Sustainable, Future-Oriented Partnership" for East Asia Forum. The summary and the link of the full article are below: With the country boasting stable annual economic growth of around 5 percent, large deposits of critical minerals such as nickel, and a considerable domestic market with the world’s fourth largest population, Indonesia has become a country that South Korean and global companies are actively entering. Infrastructure development, improvements in the business/investment environment, and changes in the raw material supply chain are cited as major factors in the increase in foreign direct investment in the country. However, regulations and policy uncertainty in the mining sector, along with strengthened regulations from the US and the EU, are obstacles to Indonesia’s rise as a global supply-chain hub and are likely to pose risks to business activities. Because these risks are difficult for individual companies to overcome or respond to, the South Korean government needs a future-oriented roadmap for mutual growth and to establish a foundation to minimize policy and regulatory risks. Companies need to avoid various regulations while achieving economies of scale, which requires approaching the issue from a global portfolio perspective and pursuing a regional value-chain strategy centered on Indonesia. https://lnkd.in/g5h34tcU

Indonesia is capturing the spotlight with its impressive economic expansion and strategic global market position. It has established itself as the largest economy in Southeast Asia and a hidden gem for global investors. As a pivotal force in the nickel and cobalt industries, Indonesia is swiftly advancing as a hub for EV production.   In FTSE Russell, An LSEG Business’ latest article, “Indonesia: A Hidden Gem?”, we explore the significant growth of Indonesia’s market, the evolution of its key sectors, and the promising outlook amidst political transitions. With an economy that expanded by 5.05% in 2023 and robust FDI inflows, especially in the metals and mining sector, Indonesia stands out as an alluring investment destination. This growth is complemented by increases in both the Daily Average Volume (DAV) and the Average of Month End Open Interest (OI) in SGX FTSE Indonesia Index Futures.   For a comprehensive analysis and insights into Indonesia’s strong economy and ascent in the EV value chain, click the link in the comments below. ⬇ #SGXEquityDerivatives #Index #Futures #SEA #EV

The world’s demand for nickel — already roiled by falling prices — could see more volatility going forward, according to experts. This comes as Indonesia, a major producer, looks set to declare a president who could use the critical mineral to advance national interests as the US and China compete over electric vehicle (EV) production. Indonesia is a “dominant supplier” of the world’s nickel, says Mriganka Jaipuriyar, head of news, Asia at S&P Global Commodity Insights. Asean’s most populous country produced 40.2% of global nickel last year, and this figure is expected to rise to about 44% in 2027, she adds. The outgoing Indonesian president Joko Widodo banned nickel exports back in 2020. The move kickstarted investment into downstream nickel mining and nickel processing facilities in the country — a policy that drew some US$22 billion in 2022 alone, said Jaipuriyar at the Singapore Commodity Market Insights Forum 2024 on March 6. However, London Metal Exchange (LME) nickel futures have fallen more than 20% over the past year to around US$17,832 per tonne in March. Still, this marks a four-month high for futures contracts of the key commodity, illustrating the volatility of the market. According to Jaipuriyar, the “abundance” of supply out of Indonesia was the main reason for nickel prices falling some 40% in 2023. “We’re expecting nickel prices to go down by 24% in 2024 and we’re expecting the nickel market to be in surplus until 2028.” Oversupply and entrenchment Indonesia has built up a “very substantive” nickel downstreaming sector over the past three to four years, says Ong Sin Beng, chief economist, Asean, at J.P. Morgan. Speaking at a media briefing on March 5, Ong wonders if the market can absorb this influx in production. “The degree of supply [Indonesia] put into the system is actually quite substantial… Nickel prices have actually come down. So even though there’s a lot of excitement about the EV sector picking up in Asean, what’s happening in Indonesia is a certain degree of oversupply.” Read the full story in the latest issue of The Edge Singapore.

🌟 Indonesia's Newest Nickel Giant Hits a Massive Milestone! 🚢💰 Big moves are happening in Indonesia's booming nickel industry! PT. Nadesico Nickel Industry, a joint venture between Chinese companies CNGR Advanced Material and Jiangsu Delong Nickel Industry Co., Ltd., has marked a major milestone by shipping its first-ever export of ferronickel. In an inaugural shipment watched by customs officials, a massive 6,900 tons of ferronickel set sail from Kolonodale Port in North Morowali, Central Sulawesi, Indonesia to Yangjiang Port in China. This single export deal was valued at a staggering $8 million! 🤑 👉 Read the full article for detailed insights and updates: https://lnkd.in/g5CDgF28 Don't miss out on the inside scoop of Indonesia's nickel boom! Read the full exclusive article on Petromindo.com and subscribe for more groundbreaking news from the nation's mineral and energy frontier! #NadesnicoNickelIndustry #IndonesiaFerronickelExports #MorowaliNickelSmelter #ChinaIndonesiaMiningJV #SulawesiNickelBoom #PetromindoMineralNews

🚨 Indonesia's Freeport Ownership: A Game Changer or A Compromise? 🚨 Indonesia is ahead to control 61% of Freeport's shares, a monumental shift in ownership aimed at boosting local benefits. This move, which includes President Jokowi's push to accelerate government shares in the company, comes alongside the extended operational permission for Freeport until 2061. The big question is: Does this new deal truly serve Indonesia's long-term interest, or is it a trade-off for more extractive industry dominance? With the recent opening of the smelter and the divestment, there's potential for increased local economic impact. But at what cost to sustainability and resource sovereignty? Let's dive into the pros and cons: 🔹 Pros: Increased national revenue, job creation, and added value through local processing. 🔹 Cons: Environmental concerns, long-term reliance on mining, and challenges in balancing control with foreign operations. What are your thoughts? 🤔 Is this a win for Indonesia, or does it open new challenges in managing both economic gains and environmental stewardship? 💬 Share your insights in the comments below! #Sustainability #MiningIndustry #Freeport #Indonesia #ResourceManagement #ESG #SustainableDevelopment

🌏 The Philippines is aiming to add three more processing plants to its domestic #nickel industry, as it seeks to emulate the success of neighbouring Indonesia in downstreaming its nickel resources. The Philippine government is hoping to attract foreign investment to value-add the country’s domestic nickel industry, developing it from a purely extractive sector to one that is an important step in the #lithiumion #battery value chain. Read more below ⬇ Request a free trial for Benchmark Source ➡ https://lnkd.in/eSG5_vuh