ASIATODAY.ID, JAKARTA – PT Gunbuster Nickel Industry (GNI), one of Indonesia’s largest Chinese-backed nickel smelters, has been placed under temporary court-supervised debt restructuring after the Jakarta Commercial Court granted a Suspension of Debt Payment Obligations (PKPU), in a closely watched case that underscores mounting financial pressures in Indonesia’s nickel processing industry.
According to the Jakarta Commercial Court’s case information system, the PKPU petition was filed by PT Pancaran Karya Shipping and PT Pancaran Maritim Transportindo. The court granted GNI temporary PKPU protection for up to 45 days starting June 19, 2026, allowing the company to restructure its liabilities under court supervision.
The petition also sought the appointment of a supervising judge and two court-appointed administrators, Ibnu Setyo Hastomo and Muhammad Lazuardi Hasibuan, to oversee the restructuring process. They were also nominated to serve as bankruptcy trustees should the company eventually be declared insolvent.
The case proceeded through multiple hearings beginning in mid-May before the court delivered its electronic ruling on June 19.
GNI: Operations Continue During Restructuring
In response to the court’s decision, GNI emphasized that its business operations will continue throughout the PKPU process.
In an official statement quoted on Friday, June 26, the company said it had made extensive efforts to resolve its obligations through negotiations and constructive dialogue with the parties involved before the legal proceedings advanced.
“GNI has consistently prioritized good faith and a cooperative approach in resolving its obligations. However, the PKPU process continues in accordance with Indonesian law,” the company said.
GNI added that it respects the court’s decision and views the PKPU process as a legal mechanism that provides debtors and creditors with an opportunity to reach a transparent, fair, and structured debt restructuring agreement.
The company also pledged to uphold transparency, accountability, good corporate governance, and full compliance with Indonesian regulations throughout the process.
Management expressed optimism that the restructuring would strengthen GNI’s financial position while ensuring the company’s long-term business sustainability.
Earlier Reports of Production Cuts
The court ruling comes several months after GNI became the subject of industry speculation over its production activities.
Earlier this year, the Indonesian Nickel Miners Association (APNI) said three nickel smelters had been affected by tighter nickel ore supplies following reductions in Indonesia’s 2026 mining work plan and budget (RKAB).
APNI Secretary General Meidy Katrin Lengkey claimed GNI had shut down five of its 20 production lines.
The association also identified PT Huadi Nickel Alloy Indonesia (HNAI) in South Sulawesi as having halted operations entirely, while PT Wanxiang Nickel Indonesia in Central Sulawesi was reportedly operating only two production lines.
GNI denied those claims, describing reports of shutting down five production lines as misinformation and stating that production had continued normally. The company explained that adjustments to production lines are part of routine operational management and maintenance.
US$2.7 Billion Strategic Nickel Investment
Established in 2019, GNI is owned by Chinese entrepreneur Tony Zhou Yuan and was previously affiliated with Jiangsu Delong Nickel Industry Co., Ltd., one of China’s largest stainless steel producers.
Jiangsu Delong experienced severe financial difficulties amid China’s economic slowdown and intense competition in the stainless steel sector. In March 2026, a court in Jiangsu Province approved the restructuring plan for Jiangsu Delong and 30 affiliated companies.
Under the restructuring plan, Zhejiang Materials Development Co., Ltd. (Zheshang Zhongtuo) was designated as the strategic investor and is expected to acquire an indirect controlling stake in GNI previously held by Delong.
GNI’s smelter, inaugurated by then-President Joko Widodo in 2021, represents an investment of approximately US$2.7 billion and forms part of Indonesia’s ambitious downstream nickel industrialization strategy.
The project was also designated as a National Strategic Project (PSN) and operates in Bunta Village, North Morowali Regency, Central Sulawesi, using rotary kiln electric furnace (RKEF) technology with an annual production capacity of approximately 1.9 million tonnes of nickel pig iron (NPI) for the stainless steel industry.
The company has also partnered with state-owned miner PT Aneka Tambang (Antam) and Singapore-based Alchemist Metal Industry Pte Ltd to develop additional nickel processing projects in North Morowali and North Konawe.
GNI’s entry into court-supervised debt restructuring is expected to be closely monitored by investors, creditors, policymakers, and global metals markets, as the company remains one of Indonesia’s largest nickel processing facilities and a significant component of the country’s downstream industrial strategy. (AT Network)
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