• INCO secured 30% stake in HPAL GEM CO
Vale Indonesia (INCO) has secured a 30% stake in the High-Pressure Acid Leaching (HPAL)
smelter joint venture project in collaboration with GEM CO., Ltd. GEM CO., Ltd. holds a 25%
share in this project, which is located in Central Sulawesi. The smelter, with an investment
value of USD 1.4 billion, is expected to be commissioned in 2028. Once operational, the HPAL
project will have a production capacity of 60,000 tons of nickel in mixed hydroxide
precipitate (MHP). Currently, INCO and GEM CO. are seeking additional partners to take the
remaining 45% of shares in the joint venture. Previously, the collaboration was formalized
during the Indonesia-China Business Forum held at The Peninsula Hotel in Beijing on Sunday,
November 10, 2024. The partnership aims to develop a zero-emission nickel processing plant,
with limonite nickel ore sourced from the Bahodopi Block mine in Central Sulawesi. During
the collaboration signing, the chairman of GEM CO., Ltd., Xu Kaihua, expressed his positive
assessment of INCO’s commitment to Environmental, Social, and Governance (ESG)
principles. He hopes this collaboration will ensure a more sustainable supply of raw materials
for battery production. On another note, INCO is pursuing a loan of USD 1.2 billion to initiate
a new mining block development project next year. The company has developed three new
mines in the Pomalaa, Morowali, and Sorowako Blocks. According to INCO data, the Morowali
mine development project is expected to be completed in 4Q25, with an additional
production capacity of 3.84 million tons of saprolite per year. As of the end of this year, the
capital expenditure for the Morowali mine development project, valued at USD 399 million,
has reached 35% completion. (Bisnis Indonesia)
• MDIY aims to operate 1,000 stores by 2025
Daya Intiguna Yasa (MDIY), the issuer managing the MR D.I.Y outlet, has set an ambitious
goal to operate a network of 1,000 stores by 2025. This expansion comes after the company
raised IDR 4.15 trillion through its initial public offering (IPO). As of 1H24, MDIY has
successfully opened 824 MR DIY stores, which are managed either directly or through a
franchise system. Ria Sutrisno, Head of Marketing Communication for MR DIY Indonesia,
mentioned that a portion of the IPO funds will be allocated to expanding their outlets in
various potential areas. This initiative aims to fulfill the company’s commitment to making
household equipment more accessible to the public. She explained that the company’s
decision on where to open new MR DIY shops depends on the location. In areas lacking
shopping malls, the company will establish outlets in the form of shophouses. Conversely, if
a strategic mall is nearby, they will opt to open a store within it. Edwin Cheah, President
Director of MR DIY Indonesia, added that the company will continue to expand its network
by targeting new regions, including smaller cities. This strategy is designed to bring the
company’s products closer to a wider customer base while also supporting local economic
growth. According to Frost & Sullivan data, the non-grocery retail segment in Indonesia has
a total addressable market (TAM) valued at approximately USD 18.4 billion. This segment is
projected to grow at a compound annual growth rate (CAGR) of 8% from 2023 to 2028. This
growth is fueled by several factors, including economic development, urbanization,
population growth, and increasing incomes. With a market penetration rate of 1.9% in 2023,
MDIY sees significant opportunities to expand its market share by leveraging the growth
momentum in the non-grocery, or non-food, retail sector. (Bisnis Indonesia)
