RI pockets Rp125 trillion investment commitment during the G20

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - RI raih komitmen investasi Rp125 triliun selama G20

18 November 2022

By: Triyan Pangastuti


Indonesia secured an investment commitment of US$8 billion or around Rp125 trillion during 2022 G20 Summit in Nusa Dua, Badung, Bali. The investment amount will be provided by companies from South Korea, China, and Europe. 

“The investment detail will be stated when the HoA (head of agreement) has been signed by related companies,” Investment Minister/Investment Coordinating Board (BKPM) Chairperson Bahlil Lahadalia stated on Thursday (17/11).

According to him, investment commitments from the G20 Summit can still increase by US$10 billion as there are still investment commitments that have not been signed. Meanwhile, there are companies involved that have reached an agreement.

Bahlil stated that, from B20 Summit to G20 Summit, Investment Ministry/BKPM held several bilateral meetings with various countries and companies in various sectors. Moreover, in a day, Bahlil can meet 9-10 investors. Many investors admit that they are interested in and confident about the domestic economic condition.

Meanwhile, Investment Ministry/BKPM also successfully declared the Bali Compendium, which is one of the agreements in the investment cluster at the Trade, Investment, and Industry Ministerial Meeting (TIIMM) in September.

Based on Investor Daily’s records, there are several investment agreements signed during the G20 Summit. Firstly, PT Vale Indonesia Tbk (INCO) signed a definitive cooperation agreement with Zheijiang Huayou Cobalt Co. Ltd. (Huayou) to process Vale’s nickel ores from Pomalaa Block in Kolaka in Southeast Sulawesi to be raw materials for electric vehicle batteries during B20/G20 Summits.

This is part of Vale’s commitment to building a world-class project portfolio and strengthening the next generation of sustainable mining in Indonesia. The high-pressure acid leach (HPAL) project in Pomalaa Block is the foundation for Vale’s sustainable development that will strengthen economic and social developments locally and nationally towards the future.

“This project is Vale’s proof of commitment to practice sustainable mining that is in line with B20’s priority to ensure just and regulated energy transition,” Vale Indonesia CEO Febriany Eddy.

He said that the HPAL project in Pomalaa Block was predicted to produce up to 120 thousand nickels that are crucial to support the electric vehicle battery ecosystem. “This cooperation is the perfect combination of Vale’s mineral resources and Huayou’s HPAL technology. This agreement is related to a non-binding memorandum of understanding (MoU) with Huayou and Ford Motor Company, last July,” Huayou Chairperson Chen Xiehua.

Next, PT Aneka Tambang Tbk (Antam/ANTM) and CNGR Advanced Material Co. Ltd., the largest precursor company from China, are planning to develop the nickel processing industry to provide materials for batteries in Pomalaa, Southeast Sulawesi. Antam, through its subsidiary PT Kawasan Industri Antam Timur (PT KIAT), will build and manage an industrial estate in Pomalaa. Moreover, CNGR, through its subsidiary PT Pomalaa New Energy Material (PNEM), will develop laterite nickel ore processing facilities to produce matte nickel with a capacity of 80 thousand tonnes per year in the industrial estate.

Then, PT Bakrie & Brothers Tbk (BNBR) is signing a cooperation with Envision Group to build the first net zero industrial park in Indonesia. Next, PT Maharaksa Biru Energi Tbk (OASA) is cooperating with companies from Germany, Intec Engineering GmbH and SBW Energy GmbH, to work on a waste-to-energy power plant in Jakarta worth 347 million euros or around Rp5.5 trillion.

Real results

Previously, Centre of Economics and Law Studies (Celios) Director Bhima Yudhistira stated that the realest result from the G20 Summit is the cooperation in food and energy transition. In terms of food, the leaders declaration agreement is crucial to maintain the food supply chain with cooperation among other countries to prevent food crisis. It is expected to support Indonesia to get through the volatile food inflation threat.

Then, regarding energy transition, he said, during G20 Summit, developed countries announced their funding commitment to energy transition worth up to US$20 billion or around Rp310 trillion. Indonesia secured many benefits from the jumbo funding as it is in line with the carbon emission reduction target. Green funding is expected to accelerate new jobs and increase contribution from tax.

“So, the success indicators are food risk mitigation and new funding. The only follow up action left is from the technical ministries that will be thoroughly prepared,” he said.

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