Indonesia’s Harita Nickel has started its investor roadshow ahead of a $600m public listing later this month. This comes as the first act in a political effort to keep nickel processing within Indonesia.
The country has seen a record year for public listings, with nickel companies driving the charge. The Financial Times reports that Harita Nickel, a subsidiary of the Harita Group, hopes to raise at least $600m in March.
Merdeka Battery Materials is also planning a local listing in the first half of this year. Hillcon, a nickel producer that went public on the stock exchange last week, is currently trading 25% higher than its initial offering price.
Investors seem enthusiastic as Indonesia seeks to become a key player in the electric vehicle (EV) supply chain. Indonesia has the largest nickel reserves in the world and is also the largest producer. In total Indonesia holds around 22% of the world’s nickel reserves.
Indonesian president Joko Widodo wishes for Indonesia to become a key player in the global EV supply chain. He has said of their position that “around 60 percent of electric cars will depend on [their] EV batteries, 60 percent of the world’s market share.”
Building an Indonesian supply chain
In 2019, Indonesia banned the export of raw nickel, seeking to expand its downstream processing capabilities. As part of a process known as “downstreaming”, external companies are encouraged to build production plants on Indonesian soil, contributing to its domestic economy.
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Following the ban, foreign EV manufacturers have made plans to develop their business in the country. South Korean company LG Energy Solutions has announced investment of $9.8bn in the country for the production of EVs. In 2021, LG Energy Solutions and Hyundai Motor Group also began the construction of a $1.1bn EV battery plant in Bekasi, West Java.
Indonesian nickel exports were valued at nearly $30bn last year, more than ten times what they were a decade ago.
In addition to nickel, other metal companies are heading for the market. Indonesia’s second-largest copper and gold miner, Amman Mineral International, is planning an IPO of up to $1bn in the first half.
President Joko Widodo said in has 2022 keynote speech that they will “create a large ecosystem so that other countries will depend on us because we already have nickel, copper, bauxite, and tin. We have enormous potential”.