{
    "success": true,
    "data": {
        "id": 2019415,
        "msgid": "downstreaming-creates-economic-value-add-for-indonesia-core-researcher-reveals-obstacles-1791172521",
        "date": "2026-10-05 09:32:47",
        "title": "Downstreaming Creates Economic Value-Add for Indonesia, CORE Researcher Reveals Obstacles",
        "author": "",
        "source": "VIVA",
        "tags": "bisnis",
        "topic": "Economy",
        "summary": "A researcher from the Centre of Reform on Economics (CORE) Indonesia highlights that while downstream processing adds value to the economy, much of the process remains stuck at intermediate products. The expert emphasises the need to extend production chains into battery components to truly realise the benefits of industrialisation.",
        "content": "<p>Yusuf Rendy Manilet, a researcher at the Centre of Reform on\nEconomics (CORE) Indonesia, stated that downstreaming creates added\nvalue for the Indonesian economy. However, he noted that most of the\nprocess is still halted at intermediate products, such as nickel pig\niron (NPI) and ferronickel, which are used in the stainless steel\nindustry.<\/p>\n<p>\u201cThis (downstreaming) is the foundation of industrialisation, but it\nis not yet the ultimate goal,\u201d he said on Monday (5\/10\/2026).<\/p>\n<p>The next stage, he added, involves extending the production chain to\ninclude precursors, cathodes, battery cells, and final manufacturing,\nwhich would involve more domestic suppliers.<\/p>\n<p>One form of this downstreaming is evident in several projects being\ndeveloped by Vale Indonesia, under the Indonesian mining holding\ncompany, MIND ID. These projects have been designated as National\nStrategic Projects (PSN) based on the Coordinating Minister for Economic\nAffairs\u2019 regulation, meaning they receive full support from all parties\nas they will serve as the foundation for developing Indonesia\u2019s electric\nvehicle ecosystem.<\/p>\n<p>Furthermore, he explained that PT Vale Indonesia Tbk is developing\nseveral nickel-based HPAL (High Pressure Acid Leach) downstreaming\nprojects in Pomalaa, Morowali, and Sorowako.<\/p>\n<p>\u201cThese three projects have a combined production capacity of\napproximately 240,000 tonnes of MHP (Mixed Hydroxide Precipitate) per\nyear, while PT Vale has stated that its strategic investment programme\nin Indonesia reaches around US$7.2 billion,\u201d he said.<\/p>\n<p>In Pomalaa, he noted, the HPAL project is being developed alongside\nFord Motor Co.\u00a0and Zhejiang Huayou Cobalt through PT Kolaka Nickel\nIndonesia, with an investment of US$4.5 billion. The capacity includes\nup to 120,000 tonnes of nickel contained within MHP per year.<\/p>\n<p>In this regard, he assessed that Vale\u2019s projects are significant\nbecause they offer a different downstreaming pathway compared to nickel\nprocessing for stainless steel needs. High Pressure Acid Leach (HPAL)\ntechnology, he said, allows low-grade limonite ore to be processed into\nclass 1 nickel raw materials for electric vehicle batteries.<\/p>\n<p>\u201cIn addition to expanding resource utilisation, these projects also\nopen access to more diverse global supply chains. However, MHP remains\nan intermediate product. The impact of these projects on\nindustrialisation will be greater if MHP is further processed in\nIndonesia into precursors, cathodes, and battery cells,\u201d he\nexplained.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/downstreaming-creates-economic-value-add-for-indonesia-core-researcher-reveals-obstacles-1791172521",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}