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Indonesia is a leader in nickel production and is emerging as an electric vehicle (EV) hub for the Association of Southeast Asian Nations (ASEAN) economies. Canadian investors are actively involved in Indonesia’s nickel industry and will benefit from the development of the country’s EV production. Despite the opportunities, mining investors interested in setting up operations in Indonesia may be affected by general market volatility, as well as changes in the policy environment, as demonstrated by the recent low global oil prices. We need to be prepared to face social outcry over mines and mining activities. lithium price.
Important points:
- Indonesia is part of the Association of Southeast Asian Nations (ASEAN) ecosystem, benefits from abundant nickel resources, and continues to grow as a regional hub for electric vehicle (EV) production.
- Foreign direct investment (FDI) in Indonesia’s mining and EV sectors is increasing, leading to the development of business clusters that reduce EV production costs.
- However, Indonesia’s mining sector is affected by global price fluctuations, protectionist policies, and nationalization. Indonesia is also embroiled in social conflict over the environmental impact of mining, which could disrupt mining operations and the development of the EV sector.
- Canadian companies invested more than C$900 million in Indonesia’s mining sector from 2003 to 2019. Canadian companies are also heavily involved in nickel mining, with PT Vale Indonesia, a subsidiary of Vale Canada Limited, owning the country’s largest nickel mine.
- Canada is expanding its influence in the region by keeping Canada’s first Indo-Pacific trade representative, Paul Topil, in Jakarta and negotiating free trade agreements with Indonesia and ASEAN.
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