Danantara Opens Door to Strategic Partners to Develop Downstream Nickel Industry

Danantara Indonesia is promoting the development of the downstream nickel industry through investment partnerships with strategic investors from various countries. The initiative is part of efforts to strengthen the industrial value chain and support the development of an integrated electric vehicle battery ecosystem in Indonesia.

Danantara Indonesia Managing Director for Global Relations and Communications Pahala Nugraha Mansury said that, through Danantara Investment Management (DIM), the organisation could seek partners with the expertise to develop production facilities and invest alongside it in Indonesia.

Pahala cited downstreaming efforts by the MIND ID Group through several of its entities: PT Indonesia Asahan Aluminium (Inalum), PT Aneka Tambang Tbk (Antam) and Indonesia Battery Corporation (IBC). These three entities are developing downstream industries in partnership with prospective and existing investors from various countries.

“Another example is what our colleagues at MIND ID are doing. It has Inalum, Antam and IBC. They are pursuing downstreaming in partnership with prospective or existing investors from other countries as well,” Pahala said, as quoted on Monday (26 October 2026).

According to Pahala, nickel downstreaming covers several interconnected stages of production, from processing nickel into mixed hydroxide precipitate (MHP) and nickel sulphate to producing cathodes, battery cells and battery packs.

Developing this production chain requires investment at various stages to establish an integrated battery industry ecosystem.

For the MIND ID Group, developing the value chain involves several entities with related business activities. Antam plays a role in nickel mining, while IBC is involved in developing the battery ecosystem.

Partnering with strategic investors is one approach to supporting the development of downstream industries and higher-value products. However, the sector also faces challenges related to capital requirements and certainty of raw material supplies.

In response, National Economic Council (DEN) Executive Secretary Septian Hario Seto said investment in downstream industries requires several times more capital than investment in upstream sectors.