Metal & Energy Week 2019 International Summit& Exhibition By BRI
24days before the meeting
Metal & Energy Week 2019
International Summit& Exhibition By BRI
Jakarta JS Luwansa HotelMarch18-21,2019
Organizer: Kadin Indonesia, ISPA, China Foshan Metal Association
(Draft concept program for as of Jan 22, 2019)
Introduction& Back Ground
1. Why Metal and Energy week 2019?
· Mineral and Energy is the most successful sector for China and Indonesian cooperation under Belt and Road Initiative. Over US$20 Billion have been invested in this sector which generating over 100 billion of economic power, and over 500,000 of direct and indirect employment opportunity.
· While 2019 is another year of uncertainty in Global competition and trade war between US and China, the event will focus on metal and energy sector cooperation that are currently doing well and will continue to do better in 2019 and onward.
· Metal & Energy week will discuss current situation and provide new strategies, opportunities, and new milestones for Government, investors, and stake holders to develop this promising sector trough new technolgy
2. Global Metal Market:
· Global economic growth continues to slow down, Trade war between USA and China may drag down the Global Economic growth by 1%
· Trade War: USA announced to add 25% import duty on China steel and Aluminium by 2019, India has followed USA’s step to add duty on China metal, who else will follow?
· Indonesia posted historic trade deficit in 2018. We need to attract more investment in Mineral sector, to accelerate development of downstream industry to export higher added value products, and to increase import substitution to reduce Indonesian trade deficit
· Smallest growth: China Steel and Aluminium Industry has experienced the smallest growth rate in 2018, Low demand, low supply, and low profit. Will it be recovered by 2019?
· Who moved my Cheese? China Tsingsan invested US$5 Billion in Morowali Indonesia to produce world most efficient NPI – Stainless steel, depressing Global and china stainless steel price, “Cheese factory” is moving to Indonesia. Will you follow?
· Special Economic Zone: SEZ-KEK Bintan Alumina Indonesia (BAI) just officially opened by Coordinating Minister for Economic affair on behalf of President Jokowi. Shandong Nanshan has raised RMB 5 Billion through IPO to invest in BAI to produce Integrated Alumina Industry. BAI could become an attractive the industrial park to process any imported /local material for Export purpose to escape from US-China Trade war
3. Global & Indonesian metal and Energy sector have entered a new era in 2019:
o Indonesia will produce 1 million ton of metal Nickel and 10 million ton of Stainless steel by 2020 to become world 2nd largest nickel and stainless-steel producer.
o Stainless steel (SS): Indonesian SS consumption is 2kg/capita, China 20 kg/capita, Japan 40kg/capita. Stainless steel Mid-stream & downstream industry to be developed for Indonesian and Global market.
o Electric car Battery: Indonesia aim to become the key supplier of Nickel sulphate, Cobalt Sulphate, the main material to produce Electric car battery.
o Indonesia will become main producer of alumina to produce 10 million ton of alumina by 2025. 50% of the alumina expect to be processed to become Aluminium.
o Indonesian Aluminium consumption is 2kg/capita, China is 20Kg/capita. Indonesia has huge potential to grow.
· Cooper: On December 21, 2018, Indonesia became majority share of Freeport, one of the world largest Copper & Gold company, Copper gold smelter will be developed starting 2019, China investor is ready to invest.
C. Carbon steel: Indonesian current Steel demand 15 million ton will soon be increase to 20 million, domestic production 7.5 million ton, many investors are planning to invest in Indonesia
D. Other metals: Carbon steel, Gold, and Mangan etc. are being developed as Indonesia has abundant resources.
E. Renewable Energy: Large Hydro power plant to be built in North Kalimantan to offer renewable energy below US$4 cents/KWH to attract power intensive industry such as Aluminium etc.
4. Metal & Energy 2019 Topics highlights
A. Macro view:
· Global metal and energy sector situation and trend
· Impact of USA – China Trade war, how to attract China investor to Indonesia
· China policy on metal and energy development under BRI, how to resolve over capacity problem
· Indonesian Government policy and incentives
B. Sectoral Opportunity and Challenge
1) Nickel ore, NPI, Stainless steel
· Resource and reserve, - Ore export and domestic demand
· Technology development; Pyro and Hydro development
· Pyro: NPI & Stainless-steel investment and progress
· Hydro: HPAL investment progress
· Stainless steel downstream Industry
o Hot rolling and cool rolling
o Heat treatment
· Bauxite ore, availability and export opportunity
· Alumina Investment progress; Inalum, Weiqiao, Jinjiang, Nanshan
· Aluminiumand Energy – Development in North Kalimantan, would Kalimantan be the Centre of energy intensive industry? What is the Government policy and market reaction?
· Aluminium industrial parks – Would BAI (Bintan Alumina Indonesia) be the next Morowali of Alumina industry?
3) Cooper opportunity:
· Freeport majority share o Freeport is owned by Indonesian starting December 21, 2018, how is Free-port Next
· where and how the next smelter development?
· Who would build and invest in the next smelter
· Other opportunities in Cooper and Gold
4) Carbon steel:
· Market supply and Demand
· Opportunity and challenge, where is the ideal location?
· Could iron sand be developed to be the main material for Carbon Steel?
5) Re-cycle of metal and industry waste
· Import limitation of recycled metal to China means opportunity to Indonesia
· How is Indonesian policy on the recycle metal industry?
· Increasing usage of recycled metal.
· Indonesian and China Energy policy short and long term;
· Energy Demand and Supply
· Hydro energy resources
o North Kalimantan Kayan, Mentarang, Bahao resources and development
o Papua opportunity
· Mine mouth power plant
o Where is the ideal location? how about South Sumatera? central Kalimantan? North Kalimantan
· Oil and gas opportunity;
o Rokan Block and ahakam Block etc. oil and gas be returned to Indonesia by 2021, what is the opportunity?
5. Target Delegation& Profile:
A. Total delegation target: 500 delegations
· China: investor & delegation from China and China investor in Indonesia: 200 delegations
· International investors and institution: Singapore, India, etc including those already invested in Indonesia. 100 delegations are expected.
· Indonesian delegation, including Government officers, supporting crews: 200 delegations
B. Delegation profile
· Investors in Mineral and energy sector
· Academic, Consultant, Research and Development
· Government officers
· Material suppliers, IUP holders, Traders
· Service industry provider