Jakarta – Indonesia’s sovereign wealth fund, Indonesia Investment Authority (INA), Danantara Indonesia, and French mining giant Eramet have signed a Memorandum of Understanding (MoU) to explore the creation of a strategic investment platform in Indonesia’s nickel sector, covering operations from upstream mining to downstream processing, Danantara said in a statement on Wednesday, May 28.
The MoU signing, held at the Presidential Palace in Jakarta, was witnessed by President Prabowo Subianto and French President Emmanuel Macron during Macron’s state visit to Indonesia.
The trilateral partnership aims to develop a sustainable and integrated electric vehicle (EV) battery raw material ecosystem in Indonesia. The parties will conduct an initial assessment to identify high-potential projects and design a roadmap for long-term collaboration. The agreement underscores a shared commitment to uphold international environmental and sustainability standards in managing nickel assets.
Danantara Indonesia’s Chief Investment Officer, Pandu Sjahrir, emphasised that the partnership is a key step in positioning Indonesia as a global hub in the EV battery supply chain.
“This partnership reflects the commitment of all three parties to drive world-class nickel downstream investments in Indonesia — one of the key pillars of our national industrial competitiveness,” Pandu said. “It combines global technical capabilities in sustainable mining with long-term financing support to build an integrated, sustainable industrial ecosystem.”
Under the agreement, INA and Danantara will focus on long-term financing. At the same time, Eramet will contribute technical expertise and operational experience in large-scale mining projects aligned with international sustainability standards.
INA’s Chairman Ridha Wirakusumah welcomed the partnership as a strategic step toward reinforcing Indonesia’s critical mineral supply chains. “This collaboration blends global mining expertise with innovative financing structures to strengthen Indonesia’s domestic value-added industries and attract high-quality investment into strategic sectors,” Ridha said.
Eramet Group CEO Paulo Castellari noted that Eramet has played a central role in developing one of Indonesia’s largest nickel reserves since 2006 through its operations in Weda Bay, North Maluku.
“In 2024, Eramet Indonesia also partnered with the Geological Agency to initiate exploration of critical minerals like lithium in support of Indonesia’s energy transition goals,” Castellari said. “Today’s partnership aligns well with Eramet’s strategic focus on downstream processing and critical minerals development in Indonesia. We’re ready to contribute our sustainable mining expertise and long-term commitment to building a robust EV value chain in the country.”
The agreement comes as Indonesia accelerates its efforts to become a key player in the global electric vehicle (EV) industry by leveraging its vast nickel reserves—an essential material in EV battery production—and strengthening its downstream industrial base. (nsh)
Banner photo: Nickel mining in South Sulawesi (Putu Artana/shutterstock.com)
