Indonesia’s sovereign wealth agency, BPI Danantara, is exploring potential investment in mining company PT Vale Indonesia’s (INCO) high-profile smelter projects.
Vale Indonesia’s director and chief project officer, Muhammad Asril, confirmed that discussions with Danantara have begun, particularly regarding the company’s High Pressure Acid Leach (HPAL) developments.
“There are ongoing talks with Danantara to join three of our development projects. While nothing has been finalized yet, there is indeed an initial discussion about their potential participation,” Asril said during Vale’s Public Expose Live, held virtually on Monday, September 15, 2025.
HPAL smelters produce critical materials for electric vehicle (EV) batteries, placing them at the heart of Indonesia’s downstream mineral strategy.
Vale’s HPAL projects are located in Pomalaa, Southeast Sulawesi; Morowali, Central Sulawesi; and Sorowako, South Sulawesi. The Pomalaa project is being developed in partnership with Zhejiang Huayou Cobalt and US-based Ford Motors.
Asril added that Vale remains open to additional investors who may be interested in joining the ventures.
“Of course, we already have definitive corporate agreements with our current partners. But it doesn’t rule out the possibility of new participants, including other investors, coming in,” he cited.
The potential entry of Danantara underscores growing state-backed interest in Indonesia’s EV battery supply chain, as the government pushes to cement its role as a global hub for the energy transition.
Vale president director, Bernadus Irmanto, emphasized that the company’s HPAL projects stand out in the domestic nickel industry, citing lessons learned from earlier smelters.
“We have adopted best practices, while also learning from past failures in previous HPAL plants. These experiences are helping us to enhance the quality and competitiveness of our projects,” Irmanto said.
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