Ford in $4.5b deal for EV battery materials plant in Indonesia

  US carmaker Ford has joined PT Vale Indonesia and China's Zhejiang Huayou Cobalt's as their
  new partner in a $4.5 billion nickel processing plant in Indonesia, the companies said on
  Thursday.  

  The investment is Ford's first in the Southeast Asian country and underscores growing appetite
  among automakers for raw materials used in producing electric vehicle (EV) batteries, which
  account for about 40 percent of a vehicle's sticker price, aiming to cut costs and close the gap on
  EV market leader Tesla. 

  Volkswagen, Europe's biggest automaker, this month said that it would invest 180 billion euros
  ($196 billion) over five years in areas including battery production and the sourcing of raw
  materials. 

  Indonesia, which has the world's biggest nickel reserves, has been trying to develop downstream
  industries for the metal, ultimately aiming to produce batteries and electric vehicles. 

  The proposed high-pressure acid leaching (HPAL) plant will be located in Pomalaa in Southeast
  Sulawesi, where Vale operates a nickel mine. 

  Vale and Huayou began construction of the plant in November and commercial operation is
  expected to start in 2026. Febriany Eddy, chief executive of Vale Indonesia, said the deal is unique
  in bringing the US automaker into an upstream nickel business. 

  She said that Vale has a 30% stake in the project, with the remainder being controlled by Ford and
  Huayou. 

  The companies did not say how much Ford will invest in the plant, which is expected to produce
  120,000 tonnes per year of mixed hydroxide precipitate, a material extracted from nickel ore for
  use in EV batteries. 

  "Ford can help ensure that the nickel that we use in electric vehicle batteries is mined, produced
  within the same ESG standards as part of our business around the world," Christopher Smith,
  Ford's chief government affairs officer, said at the signing ceremony. 

  Indonesia's government has banned exports of unprocessed nickel ore since 2020 to ensure
  supply for existing and potential investors while it also courts global EV makers such as Tesla and
  China's BYD Group to invest in the country. 

  Source: The Jakarta Post 

  ASEAN, East Asia finance officials seek easier access to $240 bln
 liquidity fund

  Countries in East and Southeast Asia are looking at ways to ease access to a $240 billion currency
  swap arrangement, including allowing it to be tapped for pandemic or disaster response,
  Indonesia's deputy central bank governor said on Thursday. 

  Discussions took place for two days since Wednesday about liquidity support among deputy
  central bank governors and finance officials of the "ASEAN+3", a grouping that consists of South
  Korea, China, Japan and the 10 members of the Association of Southeast Asian Nations (ASEAN). 

  A currency swap arrangement known as Chiang Mai Initiative Multilateralism (CMIM) exists to
  support regional financial stability by allowing members, in addition to Hong Kong, to tap currency
  swap lines to support currencies in need. 

  The liquidity support can be in form of U.S. dollars or local currencies. 

  Deputy governor Dody Budi Waluyo said members acknowledged the need to expand the
  conditions of the pact to allow the fund to be accessed for pandemic or natural disaster situations. 

  "For example, if there is another pandemic and (need for) vaccines or if there's disaster,
  catastrophe. So not only for problems due to shocks from exchange rate shock and banking," he
  told reporters on the Indonesian island of Bali. 

  Dody also said that the implementation of the initiative has not been ideal as borrowers still sees
  interest rates given in the scheme as expensive. 

  "This is what we will continue to fix," he said. 

  Recommendations made by the officials on Thursday will be presented to ASEAN+3 finance
  ministers and central bank governors when they meet in May, he said. 

  Asked about the possibility of boosting the size of the fund, which has doubled since 2014, Dody
  said the issue had not been discussed, adding the current $240 billion "is already a lot". 

  Source: Reuters 

  Indonesia Aims Big Investment Deals at 2023 Hannover Messe

  Indonesia is aiming to bring home investment commitments that are at least a hundred times what
  the country has put in to join the 2023 Hannover Messe industrial fair next month. 

  The Southeast Asian nation is returning to the world’s largest industrial technology fair as a partner
  country. Indonesia will bring in 157 co-exhibitors to convince potential investors, including industry
  associations with over 500 members, meaning that the number of Indonesian companies joining
  Hannover Messe can reach thousands.  

  “We are seeking business-to-business, government-to-government, and business-to-government
  partnerships at this year’s Hannover Messe. But we also want to see actual investment coming
  into Indonesia,” Eko SA Cahyanto, the director-general for international access at the Industry
  Ministry, told a talk show on Monday. 

  “We would love to attract investment commitments that are worth at least a hundred times what
  we spend for Hannover Messe,” Eko said. 

  Eko did not explicitly say the exact figures of the total targeted investment commitment at
  Monday’s forum. 

  However, according to media reports, Eko previously told reporters that the Indonesian
  government had allocated Rp 140 billion ($9.26 million) to join the 2023 Hannover Messe in
  Germany. This means that Indonesia has set a goal to secure Rp 14 trillion in investment
  commitments at the event, although it would take time for the investment to actually come to the
  country.  

  The Investment Ministry revealed Indonesia would always rank between 15th and 20th place
  globally as the top investment destination. For investors, Indonesia can become the gateway to
  the ASEAN market, according to Nurul Ichwan, the ministry’s deputy for investment promotion.  

  “Indonesia is the largest economy in ASEAN, and we are also home to the bloc’s largest
  population. Our country always records positive growth. So [by investing] in Indonesia, investors
  are entering ASEAN’s main market and will gain access to other countries,” Nurul said at the same
  FMB9ID_IKP talk show. 

  “Indonesia and ASEAN can become part of the global supply chain that pays attention to
  sustainability, as we talk of green energy, sustainable mining, and how we can achieve the
  sustainable development goals [SDGs] via sustainable investment,” Nurul added. 

  Indonesia is the first ASEAN member state to become an official Hannover Messe partner country
  thrice. Indonesia first got partner country status in 1995. Indonesia then joined the digital edition of
  the Hannover Messe back in 2019.  

  The 2023 Hannover Messe is slated for April 17-21. 

  Source: Jakarta Globe