Jakarta – Economists believe that nickel potential in North Maluku Province can be Indonesia’s future. Studies show that the province in the eastern part of Indonesia has nickel reserves that can be processed into raw material for electric car batteries for the next 73 years.
Permata Bank economist, Josua Pardede said, North Maluku’s economic growth in 2022 of 23.4%, the highest in Indonesia, is driven by the nickel downstream industry. “North Maluku can become a motor for national economic growth and become the most important chain in the world’s electricity-based automotive industry,” he said.
Pardede said as much as 99.76% of Indonesia’s nickel reserves are scattered in the regions of Sulawesi, Maluku and Papua. Until 2021, he said, the three provinces’ total nickel reserves will reach 4.6 billion tons. From the production side, in 2021 Indonesia’s nickel production reached one million tons or the highest in the world.
Global demand for refined nickel is estimated to reach 3.2 million tons in 2024, driven by efforts to reduce emissions through a more environmentally friendly energy transition. Likewise, world nickel mining production is predicted to reach 3.4 million tons in 2024. “Indonesia’s nickel processing industry is estimated to contribute 1.4 million tonnes, or more than 40% of global production,” said Pardede.
He cited that during the period 2017 to the first quarter of 2022, Sulawesi, Maluku and Papua provinces’ contribution to foreign capital companies (PMA) for basic metals and metal goods reached 80.8 percent or USD 22.1 billion. From the domestic investment (PMDN) side, the three provinces’ contribution to the national sector reached 15.4%. (Hartatik)
Banner photo: Nickel mining in South Sulawesi (Putu Artana/shutterstock.com)