Jakarta, CNBC Indonesia – The BUMN Ministry has assigned three state-owned companies to form a holding for electric vehicle battery factories in Indonesia.
Infovesta Utama Head of Market Research, Wawan Hendrayana, assessed that the news could be a positive catalyst for investing in mining sector stocks, particularly nickel producers such as PT Aneka Tambang Tbk (ANTM) and PT Vale Indoneisa Tbk (INCO), which 20% of the shares are already controlled by the government. .
However, Wawan suggested that investment in this sector be carried out for the long term, because the opportunity for the electric vehicle industry will last a long time. This is because nickel is a major component in the production of electric car batteries.
“Holding BUMN car batteries is interesting, the world automotive trend is in this direction, this will be sustainable for the long term,” said Wawan, in an interview with CNBC Indonesia, Thursday (15/10/2020).
He considered this to be a good entry for investors into nickel stocks, such as Antam and Vale Indonesia.
In terms of valuation, according to Wawan, ANTM is quite attractive and very cheap. “And what investors are looking for is Antam’s ability in nickel production, for ANTM it is quite attractive even though it has increased by 30%, at least a period of 5 years,” he said.
In trading this Thursday (15/10/2020), Antam’s share price was still moving up 2.09%, the level of Rp 975 per share. In the past week, Antam’s shares have risen 36.11%.
For information only, three SOEs were involved in the formation of this battery holding, among others, the Mining BUMN Holding namely MIND ID or PT Indonesia Asahan Aluminum (Persero) aka Inalum, the BUMN Migas Holding PT Pertamina (Persero), and PT Perusahaan Listrik Negara (Persero). MIND ID will also involve a subsidiary under the auspices of the holding, namely PT Aneka Tambang Tbk (ANTM).
Regarding the plan to build an EV battery factory, the Ministry of BUMN even mentioned that two big companies in the world, Contemporary Amperex Technology Co. Ltd (CATL) from China and LG Chem Ltd from South Korea, which is the world’s largest producer of EV batteries for electric vehicles, are interested in joining the project worth US $ 20 billion (Rp.296 trillion, assuming an exchange rate of Rp.14,600 / US $).
(hps / hps)