BNSI Bonded Zone Inauguration Boosts Morowali Economy and Job Creation

Minister of Investment and Downstreaming/Head of BKPM and CEO of Danantara, Rosan Perkasa Roeslani, together with South Korean Ambassador Mr. Yoon Soon-gu, officially inaugurated the Bonded Zone of PT Bahodopi Nickel Smelting Indonesia (BNSI) in the International Green Industrial Park (IGIP), Morowali Regency, Central Sulawesi, on Wednesday (22/7). The inauguration coincided with the ceremony for the placement of the main equipment for the BNSI project, a latest-generation HPAL Autoclave with a capacity of 1,868 cubic metres, the largest in the world, which serves as the heart of nickel processing into Mixed Hydroxide Precipitate (MHP) with a production capacity of 90,000 tonnes of nickel metal per year. The project, with an investment value of US$1.845 billion or approximately Rp28 trillion, is the result of international cooperation led by investment from Ecopro of South Korea, supported by core technology from GEM of China, and nickel resources from PT Vale Indonesia. The presence of the Bonded Zone, facilitated by the Directorate General of Customs and Excise, provides significant fiscal incentives in the form of import duty exemptions and non-collection of import taxes (PDRI) for machinery equipment and supporting raw materials. Zaky Firmansyah, Head of the Regional Office of Customs and Excise for Northern Sulawesi, stated that the benefits of the Bonded Zone include the exemption of entry fees and non-collection of import taxes, which can attract investment, particularly in IGIP. He noted that this is the newest industrial area in Morowali and carries a green ecology theme. The inauguration was attended by high-ranking officials, including Central Sulawesi Deputy Governor Reny A. Lamadjido, Morowali Regent Iksan Baharudin Abdul Rauf, and PT Vale Indonesia executives. PT Vale Indonesia’s President Director and CEO, Bernardus Irmanto, asserted that the project’s superior cost structure provides extraordinary economic resilience amidst fluctuating global nickel prices. GEM Co., Ltd. Chairman, Professor Xu Kaihua, described BNSI as proof of strategic collaboration between Indonesia, South Korea, and China in building the world’s first zero-carbon nickel industrial area, aiming to support the acceleration of the global energy transition. Once fully operational, BNSI is projected to generate export value of approximately US$1.5 billion or Rp22.5 trillion per year, create around 5,000 new jobs, and supply enough nickel raw material to meet the needs of approximately three million electric vehicles annually. Zaky Firmansyah added that the government, particularly in fiscal matters, will encourage further investment growth, noting a 56% increase in 2026 compared to the same semester in 2025, which signifies rising economic growth especially in Morowali and North Morowali Regencies. Customs and Excise affirmed its commitment to providing continuous assistance to ensure compliance with goods entry procedures, Bonded Zone governance, and future export processes. Currently, 59 companies are recorded as operating in the Morowali area, demonstrating increasing industrial growth in Central Sulawesi. The Bonded Zone facility in IGIP is believed to further strengthen investment appeal in the newest industrial area in Morowali, which champions the concept of green ecology. GEM and its partners are also committed to developing IGIP as a world-class green industrial park integrating new energy industries, smart manufacturing, a circular economy, and a centre for environmentally friendly metallurgical technology innovation.