It is reported that an Indonesian cabinet minister said on Wednesday that Indonesia has cut Tax incentive to limit investment in low-quality nickel products. The country aims to extract as much value as possible from its rich nickel reserves and promote further downstream investment.
The Indonesian government plans to invest approximately $95 billion this year and will continue to focus on the natural resource processing industry, but hopes to save nickel reserves for producing higher value products such as materials for manufacturing electric vehicle batteries.
Indonesia has the world’s largest nickel reserves. Since the ban on nickel ore exports in 2020, Indonesia’s investment in smelters has surged, but the majority of production is nickel iron or nickel pig iron (NPI), which is used for stainless steel and typically only contains 30% to 40% nickel.
