Jakarta, Indonesia.Sentinel.com — PT Vale Indonesia Tbk (INCO) remains optimistic that Indonesian nickel will continue to be in high demand globally, despite the potential challenges posed by the United States’ Inflation Reduction Act (IRA).
The company’s confidence stems from Indonesia’s position as the world’s largest producer of nickel, offering the most cost-effective supply available.
Febriany Eddy, President Director of PT Vale Indonesia, highlighted Indonesia’s significant role in the global nickel market, noting that the country produces about two-thirds of the world’s nickel.
“Indonesian nickel is not only abundant but also the cheapest in the world. This ensures that other countries will continue to rely on our supply. However, it’s crucial for Indonesia to diversify its market for nickel,” he stated during the Mining Zone CNBC Indonesia event on Monday, August 26, 2024.
In light of these market dynamics, PT Vale Indonesia supports the Indonesian government’s ongoing discussions with the U.S. regarding the IRA, which currently excludes Indonesian nickel from the green incentives offered by the U.S. for electric vehicle manufacturers.
Eddy emphasized the importance of addressing concerns related to environmental, social, and governance (ESG) standards, inviting stakeholders to observe Vale’s sustainable practices firsthand.
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Previously, Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, remarked that the IRA poses challenges for the U.S., as the country remains dependent on Indonesian nickel supplies.
The IRA includes provisions for incentives and subsidies linked to green energy, but raw nickel for electric vehicle batteries from Indonesia has not been included under this legislation.
(Agung)
