A. What is Nickel
Nickel is a naturally occurring metallic element with a shiny, silvery-white appearance. It is the fifth most common element on Earth and is found in large quantities in the Earth's crust and core. Nickel has many properties like having a high melting point until 1453oC, magnet characteristics, and also can be fully recycled, and other properties. According to Nickel Institute, the world's nickel resources are currently estimated at almost 300 million tons. Indonesia and other countries like Russia, Australia, and Kanada contain up to 50% of nickel global resources. Nickel can be used in two types there are first use and end-use. The first use of nickel is to convert nickel to intermediate products like stainless steel, batteries, plating, and others. For the end-use of nickel, nickel is used mostly in engineering, metal goods, and building & construction. Nickel Institute explains that nickel has a big contribution to socio-economic impact because the chain value of the nickel is support a large number of jobs globally.
B. Indonesian Nickel
Indonesia, a country known as a tropist country with many diversity of forests is also a country that is noted as the largest nickel exporter in this world. According to data from the United States Geological Survey (USGS) Unites States, Indonesia has exported nickel and reached 1million metric tons of nickel in 2021. This number shows that the export of nickel is increasing by 1, 29% from the last year which is 771.000 tons of nickel in 2020. Indonesia has nickel resources that are estimated until 21 million tons. This number shows that 37.04% of the world's nickel is located in Indonesia.
Nickel is one of many common commodities in Indonesia. According to BPKM (Badan Koordinasi Penanaman Modal) or Capital Investment Coordinating Board, with the many nickels resources its make Indonesia decided to build the electric vehicle battery industry of the types NCA (nickel cobalt aluminum oxide) and NMC (nickel manganese cobalt oxide). Four state-owned enterprises, namely PLN, Antam, Inalum, and Pertamina formed the Indonesia Battery Corporation (IBC) to support the government's efforts to increase the added value of more strategic mineral commodities. Nickel is also the reason many investors invest in Indonesian nickel, especially in the batteries industry.
C. What New about Indonesian Nickel
Recently there is information about Elon Musk that meet with Indonesia's President Mr. Joko Widodo and they talked about Elon Musk that wants to buy nickel from Indonesia to make batteried for their tesla cars. Mr. Joko Widodo knows that Elon Musk is the richest person in the world and doesn't want to waste the chance to make create an announcement that Indonesia doesn't export raw
nickel but the nickel needs to be processed in Indonesia. Mr. Joko Widodo also said that if Elon Musk really need the Indonesian nickel he must build their batteries factory in Indonesia.
We know that Elon Musk is like the guidelines in investment so with this step Mr. Joko Widodo tries to make many investors invest more in Indonesia and with the rule of making the batteries factory in Indonesia it makes more jobs for Indonesian people. We can see that Mr. Joko Widodo is smart to take the chance with the nickel and try to make this country become more developed.
Elon Musk that promises to build the factory in the US makes Mr. Joko Widodos's offer difficult. But, because both sides need each other so they use their subordinate to have a discussion about their agreement that we know in the media is Mr. Luhut that meet with Elon Musk and his staff. After the discussion, they get the result and Elon Musk tries to meet Mr. Joko Widodo again to talk more about the offer.
As long as they talk about the offer Elon Musk is trying to find another alternative resource for their batteries. Head of Indef's Center for Industry, Trade, and Investment Andry Satrio Nugroho said that the opportunity for cooperation was relatively difficult because Tesla had switched to using cathodes made of lithium iron phosphate or LFP, which are more efficient than nickel ore, limonite, and cobalt. This alternative is a threat to Indonesia in finding investors and developing our country and the agreement is between Elon Musk also Mr. Joko Widodo so it makes Indonesia have to find the best solution before it's late.
D. References
- https://nickelinstitute.org/en/about-nickel-and-its-applications
- https://pubs.usgs.gov/periodicals/mcs2022/mcs2022-nickel.pdfÂ
- https://english.kontan.co.id/news
- https://voi.id/en/technology/15763
- https://otomotif.bisnis.com/read
- https://www.bkpm.go.id/id
