MethodologyContact usLogin
We recently interviewed Meidy Katrin Lengkey, Secretary General of the Indonesian Nickel Miners Association (APNI) ahead of the International Critical Minerals and Metals Summit: Indonesia. She outlined the many reasons why international investors, miners and manufacturers should be excited to know more about the country. She will be speaking on the program at the summit. Here’s what she had to say.
First, because we lead in so many minerals, not only nickel. If I’m talking about nickel, yes, we are the number one for nickel. And also since 2020, we control the production of nickel in the world.
In 2023, 65% of nickel production in the world comes from Indonesia. So you see, Indonesia can control the situation and condition. I can say for the price also, because like LME, when they make the price, one of the reasons coming from Indonesia, what is the Indonesia output, Indonesia production, the situation in Indonesia and also for the regulation in Indonesia, especially with the next government coming.
So this is it. Indonesia is a very important country for minerals and metals. I’m not talking about nickel only, but we are the number one for nickel, we are number two for bauxite, we are number five for copper also, and tin.
And I can say we have 47 critical minerals. And from the 47 critical minerals, we have 22 strategic minerals. So you can imagine how it’s my country.
I’m so love my country, Indonesia, we have a lot of natural resources. But again, not only to have the material: we need collaboration, we need technology, we need investment. So that’s why to increase the value for country, we invite investors to build a processing plant in Indonesia.
And I can say since 2014, we make it a success story of the nickel downstream in Indonesia.
Okay, just because this is an international event. Not only from Indonesia, we invite people from around the world, in the mining sectors, special mining sector, from minerals and coal. But if you’re talking about minerals, the outcome is how to collaborate with other countries. Indonesia can become the ecosystem of battery to support the EV for the electric vehicle.
But to make a battery, we only have the battery cathode like the NMC – nickel, manganese and cobalt. Yes, we have it for the nickel, for manganese and cobalt, not only for nickel, but since 2023, we are the number two for cobalt production in the world. So manganese, yes, we have a lot of in Nusa Tenggara.
But to make the battery cell, we need lithium, we need graphite. So we need to collaborate with other countries who own the graphite and also the lithium. But we’re not only talking about the materials, we need investors who own the technology process in Indonesia.
And the point is, from the delegates around the world, we’re looking for the technology and we’re looking for the experts who can make the proper ESG for Indonesia. You know exactly Europe, they blessed us for the issue of Indonesia dirty nickel. Yeah, come on guys.
I can say we are the new players for the nickel downstream, but I can say not more than 10 years we are success to make it nickel downstream. We have a success story. I can say we are more successful than other countries.
But if you compare Indonesia and other countries, let’s say Europe, let’s say China, how many nickel processing plant over there? If you compare Indonesia, currently we have 54 smelters in nickel processing plant production. And others still under construction, 38 or so. Another one still unplanned because they’ve not yet got the permit.
It’s complicated in Indonesia to get a permit. So I can say we’re looking for the new technology. We’re looking for more investors to make a processing plant for another mineral, not only nickel.
Again, not only nickel. We have copper, we have tin, we have bauxite, we have gold also. So we’re looking for investors who can make a processing plant, like they’ve done for nickel, for other minerals, but with the proper ESG with Indonesia conditions and the current situation of Indonesia.
That’s it. So I hope we can discuss a lot of things regarding to make the good mining practices, to increase the value added for the country, and to improve the SIMBARA. You know the SIMBARA we just launched? The System Information for Mineral and Batubara, integrated system coming from five ministries.
Five ministries. So it means it’s more easy to control and monitor from upstream to downstream. We released this very recently for nickel and tin.
Number one in nickel. So this is it. We’re looking for a new partner, we’re looking for the new technology, we’re looking for a new agency who can handle the ESG assessment with the Indonesia condition, with the Indonesia situation, with the Indonesia regulation.
But let’s see what the new government will say.
• In the program at ICCMS, what areas will you be covering?
Just because I’m from nickel, of course, I will talk about nickel. What next for nickel? What next for the new regulations coming? In terms of the new government coming? Of course, we need insight from the market. Not only from Indonesia, we are the producer one.
But we’re looking inside from the buyers, from the market around the world. Because mostly, buyers come from other countries, not from Indonesia. We’re looking for the new technology from other countries, not only China.
To make it independent. So no one will say, Indonesia is controlled by China. Indonesia regulation will be open to any other country, not only for China.
But yes, just because I’m in nickel, I’m looking for how to develop Indonesia with good mining practices. We are concerned for the environment, we are concerned to increase the economy for the local society, to increase the GDP, especially at the point of the nickel area, upstream and downstream, mining and smelters. The point is how to increase the value added, how to increase the economic growth in this sector, in that area, in the province area, not in the central.
• What is APNI’s role in supporting the government?
We are Indonesian Nickel Miners Association, we were founded by the government seven years ago in March 2017. And during these seven years, we have already done a lot of things to support the players, the industry, the nickel miners, the nickel industry, but how to increase the value added for the country.
We are the one to introduce the nickel ore benchmark price in 2020, and already put it on the regulation. So for the whole miners, when they sell their nickel ore to the smelter, they have to use our nickel benchmark price. We call it SPM, every month we release, every month after the ministry signing.
And last year, we did it again by introducing the RKB, you know the RKB means like a report and budgeting, cost and budgeting report to the government, to the central ESDM ministry. Before 2023, sorry, last year 2023, every year we have to apply, every year. But thanks God, we did it, we make it every year.
So it means to increase the cost, and to increase the profit, to reduce the cost, you know, it’s not easy to apply for the whole documents, you know, especially when we use in consultant and so on and so on. But at least, we just try to make everything efficient, and then increase the profit to the players, to the mining sectors, to make it easier and controlling, monitoring from the government.
And this year, we collaborated with other associations in minerals, on how to control the whole strategic minerals and critical minerals on the president’s decree. We’ll release maybe next month, I don’t know because it’s coming from the government. But any association, we try to give some idea and suggestion to the government, because we are the players, we know exactly what’s happening.
And ours, on our location, on our side, to the smelters, and so on. So they’re waiting for us, waiting for the suggestion from the players directly. So it means everything’s dependent from the government policy.
I can say all of players now looks like, wait and see. Not more than three months. In October, we will have a new president, and two weeks after the inauguration, we will have a minister.
So we’re waiting for the next government, a new government, what kind of regulations are coming, but at least we have something to suggest what’s next. Next regulation, next policy to support the industry, especially in the mining sectors, but to increase the value add for the country.
• Finally, what are you most looking forward to at ICMMS?
Well, the point is to open people’s eyes around the world to what is in Indonesia. What do we have in Indonesia? In Indonesia, not only our natural resources, but what kind of government support you can get, like incentives from the government and subsidiaries of the government, and how you can make a profit in Indonesia. That’s it. So again, we need the collaboration with any other party, any other company, any other country, not only from China.
I love China. I love it because we have a success story of the nickel downstream program, but we need another country to support another mineral. We still have a lot of chance for another mineral, like I told you, bauxite, tin, copper, gold, and so on and so on.
So we need collaboration. We need more investors coming. We need more money.
We need more technology. How to increase the value add, how to increase the economic growth to the area, the area of mining, the area of smelters, yeah, and support for Indonesia. That’s it.
This is for our future. We focus on the environmental. We focus on the ESG, but what kind of ESG assessment we can put it in Indonesia.
That’s the point that I’m looking for the results coming from this ICMMS conference from Fastmarkets in September. So guys, you have to come. Come and discuss what’s next, what regulations are coming, how to make a profit from our natural resources.
You have to join and you can discuss directly with the Indonesian players and the Indonesian government. I’ll see you in Bali.