Tuesday, July 16, 2024

Government: BASF, Eramet temporarily delay investment in Sonic Bay project

Reading Time: 2 minutes
Gusty da Costa




The government has claimed that Germany ‘s chemical company BASF and French mining and metallurgical company Eramet did not withdraw from Sonic Bay Project, but only postponed their investment while considering the direction of global trade and market, a senior government officials says.

Expert Staff to the Minister of Energy and Mineral Resources, Agus Cahyana, said Eramet as a nickel mining and metallurgical company has its own concessions in Indonesia.

” So they did not withdraw their investment. It means they just want to see how far the international trade and market go. That’s how I see them being more conservative,” Agus said on Friday, July 5,2024.

Previously, Minister of Investment /Head of Investment Coordinating Board Bahlil Lahadalia confirmed that BASF and Eramet did not cancel their investment plan in Indonesia. Both are temporarily postponing their investment until global market of electric vehicle are good.

“Because once they invest and the market does not absorb their products, it is a pity for them,” he said.

Currently, Bahlil said, the markets of electric cars are going down in Europe and the US after some governments in Europe and the US impose 100 percent taxes on electric cars imported from China.

He said that the government of Indonesia is trying to make some adjustment because it is not sure about what will happen in the global economy.

More over, Bahlil added, the competition for electric cars is very tough. “The prices of Chinese electric cars are all cheap. As you can see how after Tesla laid off so many of its employees, its sales have net been optimal. They suffer losses in competition against cheaper Chinese cars,” Bahlil said.

In a statement to Indonesia Business Post, Eramet announced that the company and Germany’s BASF have decided against a joint investment in a nickel-cobalt refining complex in Weda Bay.

Eramet will continue to evaluate potential investments in the nickel electric vehicle battery value chain in Indonesia and will keep the market informed in due course.

In 2020, Eramet and BASF signed an agreement to assess the potential of jointly developing and constructing a nickel-cobalt refining complex in Weda Bay. After thorough evaluation, including discussions about project execution strategy, both partners have decided against this investment.

Geoff Streeton, Eramet’s Group Chief Development Officer, said Indonesia is poised to play a pivotal role in the future of the overall global nickel market.

“Eramet remains focused on sustainably optimizing the resource potential of Weda Bay mine to supply ore to local nickel producers, while also further investigating opportunities to participate in the nickel electric vehicle battery value chain in Indonesia,” he said.

Gusty da Costa






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


The obligation to allocate 60 percent of natural gas production for the domestic market (DMO) is expected to increase the utilization of the glass industry to 90 percent, says the Flat and Safety Glass Association (AKLP) in a statement.
A subsidiary of state owned energy company Pertamina, Pertamina New & Renewable Energy (Pertamina NRE) and Coal Power Generation Company Bangladesh Limited (CPGCBL) have signed a Memorandum of Understanding (MoU) of 500 MW grid-connected solar PV project at Moheshkhali area of Cox’s Bazar, Bangladesh, and other parts of the country.
The Financial Services Authority (OJK) has given the green light to the Muhammadiyah Muslim organization to establish or acquire an Islamic bank in Indonesia, citing the authority’s objective of fostering the growth of a robust and competitive Islamic banking industry.
State electricity company PT PLN energizes the first transmission line connecting its 150 kiloVolt (kV) Kolaka Substation in Kolaka regency, Southeast Sulawesi, with the substation of PT nickel mining company PT Ceria Nugraha Indotama (CNI), part of the Ceria Group.
The Ministry of Energy and Mineral Resources (ESDM) is considering possible relaxation for export of bauxite ores, an official said.
The Ministry of State-Owned Enterprises (SOEs) is pushing for state-owned companies to focus on six key sectors − basic infrastructure development, mineral industry downstreaming, energy security and defense system modernization, tourism development, SME initiatives, and agricultural development − to boost domestic economy.