The Ministry of Industry (Kemenperin) continues to accelerate the development of the Indonesia Morowali Industrial Park (IMIP), positioning it as a key contributor to the national economy.

Located in Central Sulawesi, IMIP serves as a vital hub for mineral downstreaming, particularly nickel, which plays a strategic role in the global electric vehicle battery supply chain.

Deputy Minister of Industry Faisol Riza highlighted during his visit on August 13, 2025, that “the existence of IMIP not only strengthens Indonesia’s position as a producer and processor of strategic raw materials but also acts as a driver for domestic value addition, export enhancement, and local employment absorption.”

Expanding Production Capacity to Meet International Standards

Faisol emphasized the urgent need to increase IMIP’s production capacity to meet global market demands and comply with established standards.

He noted that IMIP stands as a showcase for Indonesia’s industrial sector on the international stage, aligning with President Prabowo Subianto’s mission to continue downstreaming and industrialization efforts aimed at boosting domestic value creation.

“The success of IMIP will reflect the progress of the national industry as envisioned by President Prabowo, developing local industries that contribute optimally to tax revenues and improve community welfare,” he added.

Driving Indonesia’s Electric Vehicle Battery Ecosystem

Aligned with President Prabowo’s vision to introduce domestically produced electric vehicles, the Deputy Minister is pushing for accelerated production of nickel-based electric vehicle batteries, a critical component of the national electric vehicle ecosystem.

“This strategic component is essential in building an integrated national electric vehicle ecosystem, covering raw material processing, battery manufacturing, and vehicle assembly,” Faisol explained.

Collaborative Efforts for Sustainable Industrial Growth

The Ministry of Industry pledges ongoing collaboration with industrial park management, local governments, and relevant ministries to ensure IMIP’s development adheres to regulations and sustainability principles.

Faisol stressed, “We want to ensure that this industrial area development not only strengthens national competitiveness but also provides tangible benefits to surrounding communities and preserves environmental sustainability.”

With full government support, IMIP is expected to become a model integrated industrial park in Indonesia, combining mineral downstreaming, manufacturing industries, and environmentally friendly technological innovation, moving Indonesia toward its vision as a global industrial hub.

Positive Industry Performance Amid Global Economic Pressures

While some industrial sectors struggle under global pressures, the basic metals subsector shows remarkable growth. In the second quarter of 2025, it posted a year-on-year growth rate of 14.91 percent, far surpassing the national economic growth of 5.12 percent.

“The economic growth in the processing industry is evident from the Central Statistics Agency data. This result is part of the cooperation between stakeholders, industry players, local communities, and even the military and police in developing the industrial sector,” Faisol affirmed.

Strengthening Industry-Government Cooperation

Emilia Bassar, Communication Director of PT IMIP, warmly welcomed the Deputy Minister’s visit, noting that “the cooperation between IMIP and the Ministry of Industry has been effective, especially in encouraging investment growth. Government support is a crucial asset for IMIP to continue thriving amid global challenges.”

Emilia expressed hope that the visit would enhance coordination between the government and the business sector, ensuring IMIP’s strategic role in supporting national industrial growth and community welfare.

During the visit, Deputy Minister Faisol Riza was accompanied by key officials, including Director General of Industrial Resilience, Regionalization, and International Industry Access (KPAII) Tri Supondy, Director of Industrial Regionalization Winardi, Deputy Minister’s Expert Staff Eko Kurniawan, and several staff members.

The team inspected production processes from carbon steel and stainless steel to electric battery raw materials at PT QMB New Energy Material, followed by a public lecture at the Morowali Metal Industry Polytechnic (PILM).

PHOTO: KEMENPERIN

This article was created with AI assistance.