The Fallout of PT Gunbuster Nickel Industry Closure: Can Danantara Be the Solution?
The potential shutdown of PT Gunbuster Nickel Industry (PT GNI), a major Chinese-owned nickel smelter in Central Sulawesi, poses significant economic risks. With 12,000 employees, a US$ 3 billion investment, and an annual capacity of 21.6 million tons, its closure could disrupt Indonesia’s nickel industry and foreign investment climate. However, this crisis presents a strategic opportunity for reform and national control over critical resources.
Nickel is vital for EV batteries and renewable energy, making Indonesia a key global player. Yet, PT GNI’s challenges highlight the risks of overreliance on foreign investment. A strategic acquisition by BPI Danantara could ensure operational continuity, safeguard jobs, and strengthen Indonesia’s position in the global supply chain.
Bhima Yudhistira, Executive Director of CELIOS, emphasizes that Danantara’s involvement is not just a rescue effort but a strategic necessity to secure Indonesia’s nickel supply chain and maximize national value-added benefits. Muhammad Zulfikar Rakhmat, Director of the China-Indonesia Desk at CELIOS, stresses the need to integrate PT GNI into Indonesia’s battery manufacturing ecosystem to reduce export dependency and build a sustainable industry.
Yeta Purnama, CELIOS Researcher, highlights the importance of enforcing strict environmental and labor standards to enhance Indonesia’s reputation as a sustainable investment destination. By diversifying investment sources and renegotiating mineral export policies, Indonesia can turn this crisis into an opportunity for a resilient and investor-friendly nickel industry.
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📩 Contact: Yeta Purnama (admin@celios.co.id)
