BKPM Strengthens Nickel Downstream Development in Morowali
The Ministry of Investment and Downstreaming/BKPM is strengthening the development of mineral downstreaming as part of the national economic transformation. One key focus is ensuring the progress of the Sambalagi High Pressure Acid Leaching (HPAL) project in Morowali, Central Sulawesi, which is part of the National Strategic Project for integrated nickel industry development. Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani stated that the Sambalagi HPAL project proves that Indonesia’s downstreaming has entered a more advanced stage, not only creating mineral added value but also building an integrated, competitive, and sustainable electric vehicle battery industry ecosystem. “Sambalagi HPAL sets a new standard, not merely following existing ones. This project is tangible proof that collaboration between Indonesia, South Korea, and China can align with national interests, namely building resource sovereignty, creating jobs, and improving community welfare,” Rosan said in an official statement on Friday (24/7/2026). The autoclave, with a capacity of 1,268 m3, is the latest generation and, according to constructor GEM Co., Ltd., is the largest capacity unit ever applied in an HPAL facility.
The Sambalagi HPAL project is developed by PT Bahodopi Nickel Smelting Indonesia (BNSI), a collaboration between PT Vale Indonesia Tbk, GEM Co. Ltd. (China), and EcoPro (South Korea). Located in the Indonesia Green Industrial Park (IGIP) in Morowali, the project will process limonite ore into Mixed Hydroxide Precipitate (MHP) as raw material for the electric vehicle battery industry, with a production capacity of approximately 90,000 tonnes of nickel content per year. The project is projected to absorb around 6,000 workers during construction and approximately 3,600 workers during the operational phase, covering mining and processing facilities. Rosan emphasised that the facility’s construction is part of the government’s strategy to complete the national nickel industry value chain, from MHP production, nickel sulfate, precursors, cathode active materials, to electric vehicle batteries. He noted that Indonesia is no longer just an exporter of raw materials but has become a key player in the global electric vehicle supply chain. “We have designed the green industry cluster from upstream to downstream, and HPAL is the first gateway,” he said. He also stressed that besides generating added value, the project is designed to prioritise sustainability principles. Designed towards Net Zero Emissions from the planning stage, the HPAL facility will utilise a waste heat recovery system and solar energy to support low-carbon operations, in line with the transition target towards green industry. “We are building a complete downstream ecosystem and a better future for the people of Central Sulawesi and Indonesia. This is the true meaning of downstreaming: creating value, creating opportunities, and creating hope,” Rosan said. The government also appreciates the company’s commitment to providing direct benefits to the community through infrastructure development, social facility development, local workforce training, and the construction of an HPAL Research Centre expected to strengthen national technological independence.