Indonesia’s sovereign wealth funds, Danantara Indonesia and the Indonesia Investment Authority (INA), have teamed up with French mining giant Eramet to create a new investment platform to invest in the country’s nickel sector, according to a statement on Wednesday.
The initiative aims to strengthen Indonesia’s position in the global electric vehicle (EV) battery supply chain by building a sustainable and integrated raw materials ecosystem. Under the agreement, Danantara and INA will manage long-term financing, while Eramet will contribute its technical expertise in mining and downstream operations.
“This collaboration strengthens Indonesia’s position as a key player in the global EV battery industry,” said Pandu Sjahrir, Chief Investment Officer of Danantara Indonesia. “It unites top-tier financial resources and technical expertise to advance environmentally sustainable industrial growth.”
The collaboration will kick off with a preliminary assessment to identify high-potential nickel projects nationwide. The partners also plan to develop a long-term investment roadmap for EV battery raw materials, aligned with international environmental and sustainability standards.
INA Chairman Ridha Wirakusumah described the deal as a “strategic milestone” for Indonesia’s mineral and downstream sectors.
“This partnership combines global mining expertise with innovative financing to strengthen Indonesia’s critical minerals supply chain,” said Wirakusumah. “It highlights our commitment to building a value-added domestic industry and attracting high-quality foreign investment.”
Eramet, which has operated in Indonesia since 2006 through its nickel mining activities in Weda Bay, Maluku, said the initiative aligns closely with its strategy to support the global energy transition.
“With our long-term presence in Indonesia and experience in sustainable mining, we are ready to contribute to the country’s ambitions in EV battery development,” said Paulo Castellari, CEO of Eramet Group.
In 2024, Eramet signed an agreement with Indonesia’s Geological Agency to explore critical minerals such as lithium, reinforcing its commitment to the country’s energy transition goals.
Nickel is a key component in EV batteries, and Indonesia holds the world’s largest reserves. The government has prioritized the development of its nickel value chain to support industrial growth and reduce reliance on raw material exports.
Danantara Indonesia is a state-owned investment body with a mandate to optimise the operations of state-owned enterprises (SOEs) and other strategic national investments. And, INA is mandated to attract long-term capital to drive sustainable development and generate wealth for future generations. It collaborates with both local and global partners to invest in strategic sectors vital to the nation’s long-term economic competitiveness.
