From Ore to Opportunity: Chronicles of Change in Morowali’s Nickel Industry
From Ore to Opportunity: Chronicles of Change in Morowali’s Nickel Industry
In the span of a decade, the world has undergone transformative changes, some visible in the palm of our hand. The touchscreen technology that allows this blog to be accessed was not nearly as pervasive in 2014. Back then, many of us clung to our BlackBerrys—a brand that has since exited the smartphone market. Reflect on the 2014 FIFA World Cup, where Germany’s stunning 7-1 victory over host Brazil left fans around the globe in disbelief. These moments from ten years ago set the stage for another significant beginning: the presidency of Joko Widodo.
A lot can happen in ten years—technologies evolve, champions are crowned, and nations can be reshaped. Among these, the downstreaming project stands out as a monumental legacy, propelling substantial economic and industrial shifts across Indonesia. Today I look back at my trip to Morowali, a hub of the nickel down streaming project.
What I’ve witnessed firsthand compels belief, yet it surpasses imagination. Join me as we delve into the incredible progress of Indonesia within these 10 years, to help us imagine what the decades to come may hold.
Morowali, March 2024.
Jakarta – Morowali sky: a flight buddy
“Waiting for your turn to board the plane, Morowali style”
Despite rapid development in the past few years, Morowali is still not for the faint-hearted. Plane for example was pretty basic, a propeller plane. In particular, the air conditioning was not properly working, except for a brief few minutes during this 45-minute flight. Nonetheless, the opportunity for an interesting conversation with fellow passengers was more than enough to compensate for the lack of comfort during the flight.
Nandar
ZTE employee, travels to Morowali three times a year, witnessed the rapid economic development since the beginning
I met Nandar, who is originally from the city of Makassar, 400km from Morowali, connected by that 45-minute three times-a-day flight. He works for a Chinese telco network company ZTE and travels to Morowali three times a year. I learned from him that the mobile company Telkomsel (TLKM IJ) generates the biggest revenues in Sulawesi from their Morowali operation. Business-wise, Morowali is already bigger than the largest city in Sulawesi, Makassar. In Morowali, Telkomsel’s biggest competitor is XL Axiata (EXCL IJ).
Burgeoning wealth
Nandar shares his enthusiasm for the progress in Morowali. He said that a decade ago, everyone was poor. Even the head of the village. Nowadays, it is quite a norm for the head of the village to own and drive a Toyota Fortuner (costs c. US$ 35k, equal to 7.4x of Indonesia’s GDP per capita).
Wealth creation breeds a lot of wheelers
Number of cars in Central Sulawesi (thousands)
No. of motorcycles in Central Sulawesi (k units)
Central Sulawesi province GDP per Capita vs. Indonesia’s (US$)
Source: Government data
He said that boarding is not cheap, as the competition for a boarding room is intense. The population in Morowali has gone up from 167k last year to 176k in 2022, a 5% increase compared to 3% increase the year before. A simple room with a plywood wall will set him back by Rp700k (USD 50) per month. A more decent room with a concrete wall costs twice as much. This price matches Jakarta’s price despite the per capita income in Jakarta is quadruple Morowali’s level.
In terms of income, Nandar told us the monthly salary of Morowali workers was at least IDR 6 to 8 mn (US$ 387 to 516) with a median is somewhere between IDR 10 to 15 mn (US$ 645 to 967). This is much higher compared to Jakarta and Makassar’s minimum wage of IDR 4.9 mn (US$ 316) and IDR 3.6 mn (US$ 232) respectively.
But, with high income comes great demand for productivity:
Table: Typical working scheme at IMIP
| Category | Working scheme |
| Locals | Rp 13 mn (US$ 838) monthly salary 5 working days, 2 days leave\ Rp 15 – 18 mn (US$ 967 to 1,161) monthly salary 8 working days, 2 days leave |
| Chinese expats | Salary Unknown 6 months working days (straight), 12 days leave |
Nandar told me how the population of Morowali has grown by leaps and bounds.
The aircon was suddenly turned on and Nandar told me that it meant the plane was about to land. Cool air was flowing like the sounds of smooth jazz from a Basin Street bar. Suddenly I did not take the aircon for granted anymore and started to think that aircon was one of the best inventions of the human race. Nandar took it as a cue to end our conversation and got ready for landing. He planned to stay for a week in Morowali.
I used the opportunity before landing to ask him if he had any complaints about Morowali. He said everything was great. He wants his kids to do well in life, going to university and learning Chinese. Oh, actually one complaint, he added.
The food is great in the accommodation provided (the Wisma) in Morowali. Unfortunately, he could not really use chopsticks to eat. As a result, he typically loses quite a bit of weight during a business trip to Morowali. Other than that, for him, Morowali offers a great deal of opportunities. Nandar’s transport and meal allowance in Morowali is Rp100k (US$6.45)/day, twice his usual rate. That certainly incentivises him to love Morowali even more.
“Morowali Airport: somewhat chaotic but works”.
“The simple 10 years to build Morowali Airport”
The scorching heat of the Morowali plain was in complete contrast to the gorgeous sight in front of us. The new Morowali airport (budget was allocated in 2007, but only completed a decade later in 2017, not everything in Morowali is magical) failed to provide much sanctuary from the heat, as most air conditioners in the airport seemed to be already exhausted. Passengers’ bags were stuck in the airport, somewhat chaotic but overall, the airport miraculously worked.
The road to Morowali, the boom town
Next step was a four-hour car trip from Morowali airport to IMIP (Indonesia Morowali Industrial Park), an industrial park with a total area of 4,000 ha and 100,000 workers. To put it into context, the total number of employees was 75,000 when we visited the park in August 2022. The park boasts 54 NPI RKEFs line (8 of which are under construction) with 5 mtpa capacity. These RKEF facilities represent over 55% of such capacities in Indonesia! Not to mention new energy battery materials, 2 HPAL plants; one under construction.
Embarking on this 4-hour journey has unfolded a tapestry of gorgeous views, each moment was brushstroke painting memory of shared conversations. Entering Morowali boom town, the dusty roads echoed tales of frenetic energy, lined with hastily erected structures. The community is vibrant, with a heartbeat of its own. Shops open 24- hours, catering to the newfound prosperity. Not even in Jakarta we see such a crucible of ambition and industry.
“Petrol distribution, BRI Agent, and Smartphone shops open 24/7 hours mean serious business”
We also witnessed many small shops selling gasoline. In fact, it was like every 20 meters we would come across shops selling gasoline. The presence of numerous small shops selling gasoline may indicate a scarcity or distribution challenge in the supply chain. It could be a response to logistical disruption. The official system was somewhat broken.
A resting place for the weary
Before we knew it, we arrived at the famous Wisma IMIP, a five-star facility to host high-level management and IMIP investors.
Nestled in the heart of a remote location, our accommodation facility stands as a beacon of comfort amidst rugged terrain. The combination of comfortable rooms and hearty meals in the spacious dining halls caters to both relaxation and the unique needs of those working in the challenging environment. Thanks to the serene retreat, I was forgetting that I was in Morowali.
The luxury crafted in this guest house seems to reflect their sign of commitment.
Wisma IMIP’s Lobby – a “humble” welcoming
Backyard view: facing the port
Spacious and well-designed meeting room
Dining hall and delicate meals
Comfortable room. Everything inside is “Made in China”, except TOTO sanitary – sign of moat?
Visiting the powerhouse
We also had the opportunity to visit SCM nickel mining site, 40 km away from IMIP. This mining asset is 51% owned by Merdeka Battery (MBMA IJ). The remaining stake is held by Tsingshan.
“Inside Morowali Industirial Park – a testament to the power of perseverance and hard work”
What’s really striking is the high-quality 40-km hauling road connecting industrial estate IMIP and mining site SCM. This road is clearly the crucial lifeline for efficient operations, unlocking value for the mining assets. Constructed with durability in mind, this road is designed to withstand the heavy road for a very long time. Its robust design incorporates advanced engineering techniques to ensure resilience against the challenging conditions of the mining environment. This road facilitates the smooth movement of heavy machinery and oreladen trucks.
“SCM Hauling Road – an engineering marvel
”The lush forest and the pristine environment is gentle reminder to practice sustainability”
Remarks from the trip
Reflecting on our journey to Morowali’s nickel processing hub, we witness a transformation fueled by perseverance and dedication. The pioneers of this industry, including the vibrant community and dedicated workers of IMIP, exemplify how dedication does not betray the effort invested. The development of infrastructure, like the hauling road and Wisma IMIP, alongside Nandar’s story, highlight growth and resilience. This story epitomizes the transformation of a remote area into an industrial hub. Morowali’s evolution signifies national progress and global market influence. It emphasizes the impact of visionary leadership and industry on growth and prosperity. Hard work betrays none, but dreams betray many…
Admin heyokha
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In the span of a decade, the world has undergone transformative changes, some visible in the palm of our hand. The touchscreen technology that allows this blog to be accessed was not nearly as pervasive in 2014. Back then, many of us clung to our BlackBerrys—a brand that has since exited the smartphone market. Reflect on the 2014 FIFA World Cup, where Germany’s stunning 7-1 victory over host Brazil left fans around the globe in disbelief. These moments from ten years ago set the stage for another significant beginning: the presidency of Joko Widodo.
A lot can happen in ten years—technologies evolve, champions are crowned, and nations can be reshaped. Among these, the downstreaming project stands out as a monumental legacy, propelling substantial economic and industrial shifts across Indonesia. Today I look back at my trip to Morowali, a hub of the nickel down streaming project.
What I’ve witnessed firsthand compels belief, yet it surpasses imagination. Join me as we delve into the incredible progress of Indonesia within these 10 years, to help us imagine what the decades to come may hold.
Morowali, March 2024.
Jakarta – Morowali sky: a flight buddy
“Waiting for your turn to board the plane, Morowali style”
Despite rapid development in the past few years, Morowali is still not for the faint-hearted. Plane for example was pretty basic, a propeller plane. In particular, the air conditioning was not properly working, except for a brief few minutes during this 45-minute flight. Nonetheless, the opportunity for an interesting conversation with fellow passengers was more than enough to compensate for the lack of comfort during the flight.
Nandar
ZTE employee, travels to Morowali three times a year, witnessed the rapid economic development since the beginning
I met Nandar, who is originally from the city of Makassar, 400km from Morowali, connected by that 45-minute three times-a-day flight. He works for a Chinese telco network company ZTE and travels to Morowali three times a year. I learned from him that the mobile company Telkomsel (TLKM IJ) generates the biggest revenues in Sulawesi from their Morowali operation. Business-wise, Morowali is already bigger than the largest city in Sulawesi, Makassar. In Morowali, Telkomsel’s biggest competitor is XL Axiata (EXCL IJ).
Burgeoning wealth
Nandar shares his enthusiasm for the progress in Morowali. He said that a decade ago, everyone was poor. Even the head of the village. Nowadays, it is quite a norm for the head of the village to own and drive a Toyota Fortuner (costs c. US$ 35k, equal to 7.4x of Indonesia’s GDP per capita).
Wealth creation breeds a lot of wheelers
Number of cars in Central Sulawesi (thousands)
No. of motorcycles in Central Sulawesi (k units)
Central Sulawesi province GDP per Capita vs. Indonesia’s (US$)
Source: Government data
He said that boarding is not cheap, as the competition for a boarding room is intense. The population in Morowali has gone up from 167k last year to 176k in 2022, a 5% increase compared to 3% increase the year before. A simple room with a plywood wall will set him back by Rp700k (USD 50) per month. A more decent room with a concrete wall costs twice as much. This price matches Jakarta’s price despite the per capita income in Jakarta is quadruple Morowali’s level.
In terms of income, Nandar told us the monthly salary of Morowali workers was at least IDR 6 to 8 mn (US$ 387 to 516) with a median is somewhere between IDR 10 to 15 mn (US$ 645 to 967). This is much higher compared to Jakarta and Makassar’s minimum wage of IDR 4.9 mn (US$ 316) and IDR 3.6 mn (US$ 232) respectively.
But, with high income comes great demand for productivity:
Table: Typical working scheme at IMIP
| Category | Working scheme |
| Locals | Rp 13 mn (US$ 838) monthly salary 5 working days, 2 days leave\ Rp 15 – 18 mn (US$ 967 to 1,161) monthly salary 8 working days, 2 days leave |
| Chinese expats | Salary Unknown 6 months working days (straight), 12 days leave |
Nandar told me how the population of Morowali has grown by leaps and bounds.
The aircon was suddenly turned on and Nandar told me that it meant the plane was about to land. Cool air was flowing like the sounds of smooth jazz from a Basin Street bar. Suddenly I did not take the aircon for granted anymore and started to think that aircon was one of the best inventions of the human race. Nandar took it as a cue to end our conversation and got ready for landing. He planned to stay for a week in Morowali.
I used the opportunity before landing to ask him if he had any complaints about Morowali. He said everything was great. He wants his kids to do well in life, going to university and learning Chinese. Oh, actually one complaint, he added.
The food is great in the accommodation provided (the Wisma) in Morowali. Unfortunately, he could not really use chopsticks to eat. As a result, he typically loses quite a bit of weight during a business trip to Morowali. Other than that, for him, Morowali offers a great deal of opportunities. Nandar’s transport and meal allowance in Morowali is Rp100k (US$6.45)/day, twice his usual rate. That certainly incentivises him to love Morowali even more.
“Morowali Airport: somewhat chaotic but works”.
“The simple 10 years to build Morowali Airport”
The scorching heat of the Morowali plain was in complete contrast to the gorgeous sight in front of us. The new Morowali airport (budget was allocated in 2007, but only completed a decade later in 2017, not everything in Morowali is magical) failed to provide much sanctuary from the heat, as most air conditioners in the airport seemed to be already exhausted. Passengers’ bags were stuck in the airport, somewhat chaotic but overall, the airport miraculously worked.
The road to Morowali, the boom town
Next step was a four-hour car trip from Morowali airport to IMIP (Indonesia Morowali Industrial Park), an industrial park with a total area of 4,000 ha and 100,000 workers. To put it into context, the total number of employees was 75,000 when we visited the park in August 2022. The park boasts 54 NPI RKEFs line (8 of which are under construction) with 5 mtpa capacity. These RKEF facilities represent over 55% of such capacities in Indonesia! Not to mention new energy battery materials, 2 HPAL plants; one under construction.
Embarking on this 4-hour journey has unfolded a tapestry of gorgeous views, each moment was brushstroke painting memory of shared conversations. Entering Morowali boom town, the dusty roads echoed tales of frenetic energy, lined with hastily erected structures. The community is vibrant, with a heartbeat of its own. Shops open 24- hours, catering to the newfound prosperity. Not even in Jakarta we see such a crucible of ambition and industry.
“Petrol distribution, BRI Agent, and Smartphone shops open 24/7 hours mean serious business”
We also witnessed many small shops selling gasoline. In fact, it was like every 20 meters we would come across shops selling gasoline. The presence of numerous small shops selling gasoline may indicate a scarcity or distribution challenge in the supply chain. It could be a response to logistical disruption. The official system was somewhat broken.
A resting place for the weary
Before we knew it, we arrived at the famous Wisma IMIP, a five-star facility to host high-level management and IMIP investors.
Nestled in the heart of a remote location, our accommodation facility stands as a beacon of comfort amidst rugged terrain. The combination of comfortable rooms and hearty meals in the spacious dining halls caters to both relaxation and the unique needs of those working in the challenging environment. Thanks to the serene retreat, I was forgetting that I was in Morowali.
The luxury crafted in this guest house seems to reflect their sign of commitment.
Wisma IMIP’s Lobby – a “humble” welcoming
Backyard view: facing the port
Spacious and well-designed meeting room
Dining hall and delicate meals
Comfortable room. Everything inside is “Made in China”, except TOTO sanitary – sign of moat?
Visiting the powerhouse
We also had the opportunity to visit SCM nickel mining site, 40 km away from IMIP. This mining asset is 51% owned by Merdeka Battery (MBMA IJ). The remaining stake is held by Tsingshan.
“Inside Morowali Industirial Park – a testament to the power of perseverance and hard work”
What’s really striking is the high-quality 40-km hauling road connecting industrial estate IMIP and mining site SCM. This road is clearly the crucial lifeline for efficient operations, unlocking value for the mining assets. Constructed with durability in mind, this road is designed to withstand the heavy road for a very long time. Its robust design incorporates advanced engineering techniques to ensure resilience against the challenging conditions of the mining environment. This road facilitates the smooth movement of heavy machinery and oreladen trucks.
“SCM Hauling Road – an engineering marvel
”The lush forest and the pristine environment is gentle reminder to practice sustainability”
Remarks from the trip
Reflecting on our journey to Morowali’s nickel processing hub, we witness a transformation fueled by perseverance and dedication. The pioneers of this industry, including the vibrant community and dedicated workers of IMIP, exemplify how dedication does not betray the effort invested. The development of infrastructure, like the hauling road and Wisma IMIP, alongside Nandar’s story, highlight growth and resilience. This story epitomizes the transformation of a remote area into an industrial hub. Morowali’s evolution signifies national progress and global market influence. It emphasizes the impact of visionary leadership and industry on growth and prosperity. Hard work betrays none, but dreams betray many…
Admin heyokha
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