Jakarta, CNBC Indonesia – The share price of mining issuers, especially nickel mines in Indonesia, is expected to rise in the long term in line with plans to build an electric vehicle (EV) battery project in the country.
Head of Research at PT Henan Putihrai Sekuritas, Robertus Yanuar Hardy, said it was only natural for nickel stocks to be hunted. Because this plan gives a positive sentiment because the demand for nickel will increase.
This is because nickel is the main material for the manufacture of electric vehicle batteries. Therefore, although stocks of other mineral mines such as gold and tin, but nickel is currently quite promising with the demand for electric cars so that it becomes a positive sentiment.
“Because you could say the metal in the component industry makes the most of an electric vehicle battery, the main component is nickel. Mixed sulfide and cobalt and other ingredients are nickel,” he said in InvestTime, Tuesday (14/9/2021).
According to him, this applies to Indonesia. Because, abroad, especially in Central America, there are also many electric vehicle batteries that use other materials such as lithium, while in Indonesia there are not many and are still dominated by nickel.
“In Indonesia there is a lot of nickel as the main component. So it is only natural that nickel producers and issuers who mine nickel and their respective smelters are affected by positive sentiment from the development of electric vehicle batteries,” he said.
Although nickel stocks are highly recommended to be hunted, Robertus stressed that several factors must be considered before buying them.
This is because not all shares of nickel issuers will rise in the future.
FirstInvestors can buy or hunt shares of nickel issuers if there is certainty about when holding electric vehicle battery operates. This will be more enlightening in the future if there is clarity.
Second, which is certainly no less important is to look at the prospect of the nickel issuer’s financial performance. Must look at the fundamentals and future prospects.
“Of course, the financial performance of each one needs to be considered. For example, what will it be like in Q3. Like Q2, it’s already good enough for mining issuers, even though HRUM [Harum Energy] Q2 is negative but the others we see are still positive. If Q3 can continue to be positive with the price of nickel and other industrial metals continuing to increase, it can be a positive sentiment for the end of the year,” he explained.
On Wednesday (15/9), President Joko Widodo conducted a groundbreaking construction of the First Electric Vehicle Battery Factory in Southeast Asia owned by Indonesia Battery Corporation or IBC and the LG Consortium from South Korea.
This factory is located in Karawang Regency, West Java with an investment value of US$ 1.1 billion or equivalent to Rp. 15.73 trillion (exchange rate of Rp. 14,300/US$).
IBC is a consortium of four SOEs namely MIND ID, Antam, PT Pertamina (Persero) and PT PLN (Persero).
“By saying bismillahirrahmanirrahim, I declare that the groundbreaking of the PT HKML Battery Indonesia Electric Vehicle Battery Industrial Factory has begun,” said Jokowi, Wednesday (15/9/2021).
Jokowi himself was accompanied by Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Investment/Head of BKPM Bahlil Lahadalia, and Minister of SOEs Erick Thohir.
“May 2022 at the latest, God willing, it will be produced. It’s patented, sir. So God willing, we have produced it,” said Bahlil on the occasion.
IDX data noted that Antam’s shares closed up 0.81% at Rp 2,490/share on Wednesday (9/15), with a 7.33% increase in the week and 4% in the month. Meanwhile, INCO shares closed down 1.29% at Rp 4,960/share, with a 0.20% correction a week and down 2.27% in the last month.
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