TEMPO.CO, Jakarta - Indonesian Minister of Investment Bahlil Lahadalia denied reports about the nickel refinery investment plan withdrawal from BASF and Eramet on the Sonic Bay project in North Maluku. Bahlil said that the two companies only postponed their investment plan. “It’s pending,” he said on Thursday, June 27, 2024.

Bahlil explained that the government is in the process of negotiating the two companies’ US$2.6 billion investment plan.

According to Bahlil, the delay was caused by the low purchasing power of electric cars in Europe. Not only in Europe, the market is similarly sluggish in the US, causing the demand to drop. "So the market price fell behind the competition with cars in other countries," said Bahlil.

Previously, Deputy for Investment Promotion Nurul Ichwan said that BASF and Eramet shifted focus. "In the end, they issued a business decision to cancel the investment plan for the Sonic Bay project," said Nurul in a written statement on Thursday, June 27, 2024.

According to Nurul, the government has been aware of the investment cancellation by the German and French companies since Monday this week through an official statement released by BASF.

Meanwhile, the intended Sonic Bay Project is a nickel refinery factory with high-pressure acid leach (HPAL) technology producing Mixed Hydroxide Precipitates (MHP). Nurul said BASF and Eramet decided to cancel their investment after carrying out various evaluations on the nickel market conditions.

"Thus, BASF decided there was no longer a need to invest in the supply of electric vehicle battery materials," he said.

IKHSAN RELIUBUN

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