Whisnu Bagus Prasetyo, Jakarta – Chief Investment Minister Luhut Binsar Pandjaitan has refuted assertions made by former head of the Investment Coordinating Board (BKPM) Thomas Trikasih Lembong. Lembong claimed that Tesla's electric car factory no longer uses nickel but has switched to lithium ferro-phosphate (LFP).
"It is not accurate to state that the Tesla factory in Shanghai uses 100% LFP for its electric cars," he said on his personal Instagram account @luhut.pandjaitan on Wednesday.
Tom Lembong, a member of Anies Baswedan's presidential campaign team, has been outspoken in his criticism of the government's electrification program, which heavily depends on nickel for electric vehicle battery production.
Luhut said that Tesla still utilizes nickel-based batteries supplied by South Korea's LG. Additionally, nickel-based lithium batteries are recyclable, while LFP batteries have not yet reached that level of recyclability.
Regarding the reported decrease in nickel prices mentioned by Lembong, Luhut said that commodity prices fluctuate all the time. "You need to look at data spanning 10 years. As a businessman, you understand commodity cycles, whether it's coal, nickel, or gold," Luhut said.
According to Stockbit data, as of Jan. 22, 2024, nickel prices have dropped by 44.64 percent year on year, reaching $15,799 (Rp 247.52 million) per ton, nearing its lowest level since 2021.
Luhut said that the global average nickel prices over the past decade, starting from 2014, were around $15,000 per metric ton, which is lower than the current prices. Even during the period from 2014 to 2019, when Indonesia initiated efforts to increase the added value of minerals, the average global nickel price was only approximately $12,000. As of January 2024, the world average nickel price is around $16,000.
"So I think Anies' team needs to look at longer historical data to understand commodity price cycles," he said, adding that nickel exports from January to November 2023 reached $31.30 billion, showing a 0.6% increase compared to the same period in 2022.
Luhut invites Muhaimin Iskandar, Anies' running mate in the 2024 presidential election, to witness the economic impact of the downstream nickel industry on local communities.
"I want to invite Muhaimin to visit Weda Bay, to Morowali, to see for himself, seeing is believing, rather than spreading lies to the public," said Luhut.
Indonesia's Weda Bay Industrial Park (IWIP) is an integrated industrial area for heavy metal processing in the Weda District, Central Halmahera Regency, North Maluku.
Luhut said that the poverty rate in Central Sulawesi was 14.7 percent in 2015. By 2023, the poverty rate in this nickel-rich province had seen a decline to 12.4 percent. Similarly, in Morowali, the poverty rate decreased from 15.8 percent to 12.3 percent during the same period.
According to Luhut, a polytechnic has been established in the area, and students directly practice in industries. Indonesian students are also sent to China to learn more advanced industrial technology.
He said that within the workforce of the Weda Bay Industrial area, 10 to 15 percent comprise foreign workers. However, the number is decreasing over time due to training provided for Indonesian workers.
"We cannot avoid that because at that time we did not have (workers with specific skills)," he said.
Source: https://jakartaglobe.id/news/luhut-counters-tom-lembongs-statements-on-teslas-nickel-transitio