Indonesia launches 11 industrial projects worth US$10.2 billion

President Prabowo Subianto launched Indonesia’s first electric-vehicle battery exports and 11 industrial projects on Thursday, with total investment of US$10.2 billion.

“Bismillahirrahmanirrahim, today I, President of the Republic of Indonesia Prabowo Subianto, launch the first electric-vehicle battery exports and four industrial projects entering commercial operations,” Prabowo said.

Prabowo marked the launch by pressing a siren alongside senior officials, including Luhut Binsar Pandjaitan, Airlangga Hartarto, Bahlil Lahadalia and Danantara Chief Executive Officer Rosan Roeslani.

The four projects entering commercial operations are Blue Sparking Energy, REPT Battero Indonesia, Pioneer Aluminium Industries and XCMG Indonesia Manufacturing.

Seven new projects also broke ground at IWIP: Guangqing Nickel Cobalt, Eno Prima Material, Tinci Materials Indonesia, Weda Bay Aluminium, Bintang Karya Aluminium, Flat Solar Energy Indonesia and Guangqing Motor Indonesia.

The 11 projects have a combined investment value of US$10.2 billion, or about Rp180 trillion.

Rosan said the four commercial projects are valued at US$3.4 billion, or about Rp60 trillion, while the seven projects entering construction are worth US$6.8 billion.

The projects span nickel-based battery materials, EV battery separators and electrolytes, electrolytic aluminum, electric mining and industrial trucks, and photovoltaic glass for solar-energy applications.

Together, the projects are expected to create more than 10,000 jobs.

Rosan said first-half 2026 investment realization reached Rp1,010.6 trillion (US$56.1 billion), up 7.2 percent, while creating more than 1.4 million jobs.

The downstreaming sector’s share of total investment rose to 35 percent from 25 percent over two years, with more than 75 percent of investment realized outside Java.

Mineral-processing industries in North Maluku now contribute nearly half of the province’s gross domestic product, Rosan said.

North Maluku recorded a trade surplus of Rp31.1 trillion (US$1.7 billion) in 2025, driven mainly by processed nickel products including ferronickel, nickel matte, mixed hydroxide precipitate, nickel sulfate and cobalt.

IWIP has 52 tenants, including Glencore and Trafigura. Since 2018, it has attracted US$20 billion, with another US$7 billion planned, bringing total investment to US$27 billion and supporting 117,000 jobs.

IWIP’s exports reached $11 billion. Combined with Indonesia Morowali Industrial Park, exports total US$28 billion, equivalent to about 10 percent of Indonesia’s exports.

IWIP has more than 7.1 gigawatts of installed and planned power capacity. Together with Morowali’s 8.8 gigawatts, capacity reaches 15.9 gigawatts, above Singapore’s 13.1 gigawatts.

Corporate social responsibility programs in the area cover 32 villages around industrial and mining operations, backed by more than Rp650 billion (US$36 million).

Rosan said a fully integrated EV battery ecosystem, including battery recycling, would strengthen Indonesia’s position in global supply chains.

He added that Tsingshan has discussed with Danantara its potential participation in a 100-gigawatt solar-panel development program.

Source: ANTARA News

Indonesia plans to impose a moratorium on new plants making partly processed nickel

Indonesia is discussing a plan to impose a moratorium on development of new nickel processing facilities that produce partly processed metals, the senior minister overseeing mining, Bahlil Lahadalia, said on Wednesday.

The plan is part of the country's efforts to prop up prices of nickel products, said Bahlil.

Bahlil was named as Coordinating Minister of Downstreaming and Energy Transition in President Prabowo Subianto's cabinet reshuffle last week, on top of his current role as energy and mining minister, to streamline investment policies into downstream resources industries.

Oversupply of partly processed nickel products from Indonesia has caused prices to drop, Bahlil said.

"We are considering to minimise the industries that produce semi-finished products, and we may even impose a moratorium, while we promote industries that produce end-products," he told reporters.

Indonesia is the world's largest exporter of nickel products, but most of its shipments are crude metals such as nickel pig iron or ferronickel.

The government will also maintain its policies to control the mining quota of nickel to support prices, Bahlil said.

Source: Mining Weekly

Rupiah Gains as World Bank Upgrades Indonesia’s 2026 Growth Forecast


 

Rupiah strengthened against the US dollar on Tuesday, supported by softer-than-expected US inflation data and improved expectations for Indonesia's economic growth.

Rupiah closed at Rp17,899 per dollar, up 18 points from Monday's Rp17,917, according to market data.

Traze Andalan Futures Director and currency analyst Ibrahim Assuaibi said the rupiah managed to strengthen despite continued geopolitical tensions in the Middle East, including ongoing clashes between Yemen's internationally recognized government forces and Houthi militants.

"The rupiah managed to strengthen despite geopolitical tensions in the Middle East that have yet to ease," Ibrahim said.

Rupiah also gained support after the US Personal Consumption Expenditures (PCE) inflation report for August came in below expectations, while previous figures were revised lower.

Weaker inflation and labor market data have reduced expectations of a Federal Reserve rate hike at its Oct 27-28 meeting, Ibrahim said.

Domestically, the rupiah was supported by optimism over Indonesia's economic outlook. 

The World Bank on Tuesday raised its 2026 growth forecast for Indonesia by 0.5 percentage point to 5.2%.

The World Bank attributed the stronger growth outlook to increased government priority programs, investment linked to state-owned entities and sizable energy subsidies.

Growth is also expected to reflect stronger private consumption and higher public spending around the turn of the year. 

Earlier timing of Ramadan and Idulfitri, the disbursement of holiday allowances and 13th-month salaries, as well as the accelerated rollout of the free nutritious meals program have brought government spending forward in the fiscal cycle.

Meanwhile, Bloomberg data as of 3:59 p.m. Jakarta time showed the rupiah at Rp14,001 per Singapore dollar, Rp113.14 per Japanese yen, Rp 12,484 per Australian dollar and Rp20,117 per euro.

Source: Jakarta Globe