Danantara. Gem to develop nickel processing hub: Reuters

Danantara. Gem to develop nickel processing hub: Reuters

Indonesian sovereign wealth fund Danantara has announced plans to invest in a nickel processing hub in collaboration with Chinese recycler GEM. The project aims to tap into the country's vast nickel resources, which are crucial for electric vehicle (EV) batteries. The initiative marks Danantara's first foray into Indonesia's nickel sector [1].

According to Danantara's investment chief Pandu Sjahrir, the project involves a heads of agreement signed with GEM, creating a green industrial estate. The project will target net-zero carbon emissions and operate sustainably [1]. GEM is also collaborating with South Korean battery materials maker EcoPro, nickel miner PT Vale Indonesia, and Merdeka Copper Gold [1].

Danantara will manage 135 trillion rupiah ($8.3 billion) in investment funds this year, with 70 trillion rupiah coming from dividends of state-owned companies. The remaining funds stem from private sales of Patriot bonds and a recently obtained $10 billion syndicated bank loan [1]. The fund manages all government-owned companies, which have combined assets of over $900 billion, similar to Singapore's Temasek [1].

The project's size and start date remain unspecified, with Danantara declining to provide further details. Other companies involved, such as Merdeka, did not immediately respond to requests for comment [1].

References:
[1] Reuters. (2025, Aug 26). Danantara to develop nickel processing hub with GEM. Retrieved from https://www.reuters.com/markets/asia/danantara-chinas-gem-develop-nickel-processing-hub-indonesia-2025-08-26/