ASIATODAY.ID, JAKARTA – The Indonesian government continues to encourage the nickel downstream program as part of its strategy to achieve 8 percent economic growth as mandated in Asta Cita.
One thing that is being strengthened by the government is support from national banks to fund smelter projects in the country.
President Prabowo Subianto has officially launched the Anagata Nusantara Power Investment Management Agency (Danantara Sovereign Fund) on Monday, February 24 2025, at the Merdeka Palace, Jakarta. Later, Danantara will focus on investment in the mineral downstream sector and the construction of an artificial intelligence data center.
President Prabowo revealed that he would allocate the first wave of investment in Danantara worth US$ 20 billion to fund around 20 national strategic projects.
“Approximately 20 strategic projects worth billions of dollars will be focused on downstream nickel, bauxite, copper, construction of artificial intelligence data centers, oil refineries, petrochemical plants, food and protein production, aquaculture and renewable energy,” said Prabowo.
The Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources, Tri Winarno, revealed that in Indonesia there is already one nickel smelter that has received financing support from national banking.
The smelter is owned by PT Ceria Nugraha Indotama (Ceria Group) which uses funding from PT Bank Mandiri Tbk. He said that the refining facility deserves to be an example for other banks willing to finance downstream projects.
“There is already, as far as I know, a nickel smelter belonging to the Ceria Group which uses funding from several banks,” he said Tuesday, February 25 2025.
Ceria Nugraha Indotama is an integrated nickel mining company operating in Kolaka Regency, Southeast Sulawesi with a Mining Business License Area of 6,785 hectares.
In 2019, Ceria began its commitment to the downstream agenda through the groundbreaking of the Rectangular Rotary Kiln Electric Furnace (RKEF) smelter. Then in 2020, the Indonesian Government designated the RKEF Rectangular smelter and HPAL factory belonging to the Ceria Group as a National Strategic Project.
Two years later, to be precise in 2022, Ceria Group received syndicated credit support for term loan financing facilities from a number of banks. The financing was led by Bank Mandiri with members being Bank Jabar Banten (BJB) and Bank South West Sulawesi (Bank Sulselbar). In the syndicated financing agreement, Ceria Group received total funding of US$277.69 million in the form of a term loan facility to support the construction and operation of the RKEF line 1 ferronickel smelter plant and supporting facilities in Wolo District, Kolaka Regency, Southeast Sulawesi.
The strategic position of the Ceria Group’s smelter project is one of the considerations for national banks when distributing credit. The company was also recorded as having succeeded in increasing its contribution to the state in terms of various types of taxes for the central and regional governments, Non-Tax State Revenue (PNBP), and royalties.
According to the Operations Director of PT Ceria Nugraha Indotama Yusram Rantesalu, the tax contribution paid by the company to the state was recorded as having increased by 147%, from IDR 150 billion to more than IDR 300 billion.
“This confirms the company’s role in supporting infrastructure development and the welfare of local communities. Ceria Group’s role also has a big impact in terms of improving the welfare of the people of Wolo District with the absence of extreme levels of poverty,” said Yusram.
Appreciation of Ceria Group’s ‘Merah Putih’ Smelter
Meanwhile, the Bank Mandiri and Mandiri Tunas Finance teams appreciated the readiness of the Ceria Group ‘Merah Putih’ Smelter which is currently entering the Project Commercial Operation Date (PCOD) preparation stage during their field visit to the Ceria site in Wolo District, Kolaka Regency, Southeast Sulawesi, on 19 – 21 February 2025. This visit was part of the Bank Mandiri team’s in-depth observation of the development of the ‘Merah Putih’ Smelter project which is scheduled to begin operating in the near future.
Bank Mandiri representatives also inspected various project areas, including the RKEF Line 1 Rectangular Smelter (‘Merah Putih’ Smelter), mining area, Wolo Special Terminal, heavy equipment and workshop facilities, as well as various other supporting infrastructure. This visit is also an important momentum to deepen strategic collaboration between Ceria Group and Bank Mandiri.
Both parties are optimistic that the cooperation that has been established so far can strengthen business relations, as well as open up new opportunities to support industrial development and improve economic prosperity, both at the local and national levels.
This visit also included a review of heavy equipment by the Bank Mandiri team in the Ceria Group mining contractor area, namely PT Ceria Jasa Tambang Pratama (CJTP). Harmonization and synergy between Ceria Group and Bank Mandiri are key factors in realizing the success of the ‘Merah Putih’ Smelter project.
“With high optimism, Ceria Group is committed to continuing to contribute to the progress of the nickel industry and the Indonesian economy as a whole,” added Yusram. (AT Network)
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