Ceria’s Merah Putih Smelter Nearing Completion, Set to Produce Green Nickel
Jakarta — The Merah Putih smelter, a project of PT Ceria Nugraha Indotama (Ceria Group), in Kolaka, Southeast Sulawesi, is on the verge of commencing operations, poised to produce green nickel products for the global market. The smelter, supported by clean energy from the state-owned electricity company PLN, is finalizing the commissioning of its Rectangular Rotary Kiln Electric Furnace (RKEF) and preparing for the construction of a High-Pressure Acid Leach (HPAL) facility.
The Merah Putih smelter is designated as a National Strategic Project (PSN) and a National Vital Object (Obvitnas) by the Ministry of Energy and Mineral Resources (ESDM). The project, which began with a groundbreaking in late 2019 and secured funding in early 2022, is now targeting completion by the first quarter of 2025. The smelter’s construction progress has reached 97.05% as of November 22, 2024, according to a report from the Financial and Development Supervisory Agency (BPKP) of Southeast Sulawesi Province.
The project is using 100% Indonesian labor. The project is part of Indonesia’s broader strategy of increasing value add within the country through downstreaming of its mineral resources.
Djen Rizal, Deputy President Director and Director of Corporate Affairs at Ceria Group as quoted by Media Indonesia, said that the Merah Putih smelter is “a commitment from Ceria to implement the government’s downstreaming program to provide more added value within the country”.
He explained that the Merah Putih Ceria Smelter was built by a purely domestic investment (PMDN), owned and managed by local individuals, and funded by a syndicate of national banks led by PT Bank Mandiri Tbk, as well as Bank SulselBar and BJB.
“This Merah Putih Smelter is Ceria’s commitment to implementing the government’s downstreaming program to provide more added value within the country, as mandated in the 5th and 6th Asta Cita of President Prabowo Subianto. These are to continue the downstreaming program and growth, economic equality, and poverty alleviation to achieve Indonesia Emas 2045”, he said.
He also highlighted the challenges of the project, expressing gratitude for the support of stakeholders at the provincial and regency levels, as well as from the local community.
The smelter will use clean energy from the Bakaru Hydroelectric Power Plant, which is part of the PLN transmission network and certified with a Renewable Energy Certificate (REC). In addition, a 2 x 60 MW Barge Mounted Power Plant (BMPP) has been established at the Wolo Special Terminal and is connected to the PLN Kolaka grid, ensuring a reliable electricity supply for the smelter. This combination of renewable energy sources will ensure the nickel produced at the plant is a green nickel product.
The company has a Power Purchase Agreement (PJBTL) with the State Electricity Corporation PT PLN (Persero) for 414 MVA (352 MW) of electricity from environmentally friendly power sources.
To maintain the stability of electricity, PLN is also constructing a 2 x 60 MW Mobile Barge Mounted Power Plant (BMPP) equipped with an LNG Terminal and Regasification facility.
