Indonesia’s efforts to unite the interests of all world producers of nickel under an umbrella, such as the Organization of Petroleum Exporting Countries (OPEC), has turned out to be quite complicated.
Nurul Ikhwan, Deputy for Investment Promotion at the Ministry of Investment/ Investment Coordinating Agency (BKPM) said that before the ministry held talks with nickel producing countries, they already had agreements with countries that consume the nickels.
” For example, Canada. Canada really needs the US market, because it is the US companies that use Canadian nickel. It is US companies that supply the US market. So Canada has more interests with the US than Indonesia, a country far away,” Ikhwan said on Wednesday, January 24, 2024.
In addition to geographical consideration, nickel producers also have to re-set their contracts if they group under an organization.
“So in my opinion, it is not that they do not want an organization of nickel producers, but the conditions do not allow them to do so,” Ikhwan said.
Besides Canada, Indonesia has talked with six other biggest nickel producers, including Australia, Brasil, the Phillippines and New Caledonia.
“As for New Caledonia, the country is part of France and therefore Europe. Its nickel production is driven by the interest of Europe, which requires added values for products sold in the continent. Therefore, it is not easy for New Caledonia,” Ikhwan explained.
He said discussion about setting up an umbrella organization for nickel producers has been moving in a slow pace despite the initiatives taken by Minister of Investment/Head of Investment Coordinating Board Bahlil Lahadalia to roll out the idea.
Ikhwan said further that the biggest nickel producers still wait and see and carefully consider the idea, because those countries have their own interest with their markets and they have been tied already to the markets
“So, when we invite them to establish an OPEC like organization, they still wait and see the ongoing development and seriously think of the risks of suffering losses and contemplate of what benefits they can get,” he explained.
The discussions have been sporadically held and in unofficial manner in order to build a narrative that nickel producing countries do have common interests.
“We try to bring up the issue of common interests informally, so that once there is an opportunity to talk and covey the idea, we will come and invite them to discuss it,” Ikhwan concluded.
Earlier, Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia has revealed a number of countries he will visit to develop plans to establish an organisation of nickel-producing countries.
“Yes, nickel-producing countries in Southeast Asia include the Philippines, then Australia, Canada, Brazil, and several countries,” Mr Lahadalia said at UPN Veteran Yogyakarta, Depok, Sleman, Thursday (16/12).
He has established communication with several countries to form a special organisation for nickel-producing countries like the Organisation of Petroleum Exporting Countries (OPEC). He started his tour of these countries in January 2023.
Bahlil said that collaboration with fellow nickel or other mineral-producing countries was needed to support the electric vehicle industry in the future.
He claimed that the countries in question also have the same understanding regarding the urgency of establishing an organisation of nickel-producing countries.
