Eramet Indonesia CEO, Jérôme Baudelet, stated that in the next ten years, Indonesia will become the world’s largest nickel producer with a significant increase in production in recent times.
By 2023, according to Eramet data, Indonesia supplies 55 percent of the world’s total nickel production, thus increasing the world’s dependence on Indonesia’s nickel supply.
“We strongly believe that Indonesia will continue to be the center of global nickel production in the next 10 years. As much as 70 percent of global nickel production will come from Indonesia in that period,” said Jérôme when speaking to the media in Jakarta, Tuesday (5/11/2024).
Furthermore, Jérôme also revealed that the production of Weda Bay Nickel, Eramet’s joint venture with Tsingshan, is also showing rapid growth. By 2024, Weda Bay Nickel’s nickel production will reach 32 million tons in accordance with the production quota set in the Work Plan and Budget (RKAB).
Indonesia’s Nickel Market Experiences Under Supply of Ore
Jérôme also highlighted the condition of the Indonesian nickel market, which is currently experiencing a shortage of nickel ore supply this year. The surge in nickel ore imports from the Philippines to Indonesia further strengthens this indication.
Based on Statistic Indonesia data, Indonesia imported around 7 million tons of nickel ore from the Philippines in the first ten months of 2024. Compared to only 374,454 tons for the whole of 2023. According to the statistics, nearly 60 percent of the imports have been shipped to the port of Weda Bay.
Although imports still account for a small portion of Indonesia’s total nickel consumption, high demand has pushed nickel ore prices higher than the minimum benchmark price (HPM) set by the Indonesian government.
“This nickel ore supply shortage is creating market tension in Indonesia, despite the fact that the global nickel market is still oversupplied with finished nickel products. However, it should be noted that this oversupply is relatively small, estimated at around 60,000 tons, equivalent to about one week of consumption,” Jérôme said.
Growth Potential and Continued Commitment
Meanwhile, Eramet is optimistic about the future of nickel production in Indonesia. With abundant resource potential in Weda Bay, the Eramet joint venture targets to increase production to 60-65 million tons per year in the medium term.
In addition, Jérôme also emphasized the importance of innovation and sustainability in natural resource management. “Indonesia is a top priority for Eramet in the development of its nickel business. Eramet wants to be part of the growth of the global nickel industry and provide positive benefits to the Indonesian economy. We continue to strive to establish strategic partnerships with companies, both from Europe and Indonesia, to support the growth of the nickel industry in Indonesia,” concluded Jérôme.
