09 April 2023
Over the past two decades, there has been an increase in the awareness of business actors regarding the importance of carrying out practices and operational activities that support environmental sustainability and have positive impacts on the social and economic activities of the community. Business activities are no longer solely oriented towards maximizing economic profits, but also take into account social and environmental aspects.
This increased awareness is in line with the 2030 Agenda for Sustainable Development (SDGs), a new development agreement that promotes a shift towards sustainable development. SDG practices should also be based on human rights and equality to promote social, economic, and environmental development.
The SDGs are implemented with universal, integrated, and inclusive principles to ensure that no one is left behind. Consisting of 17 goals, the SDGs build upon the efforts and achievements of the Millennium Development Goals (MDGs), which ended in 2015.
One of the companies driving these changes is Harita Nickel, an entity of the Harita Group, which has opened integrated mining and downstream operations on Obi Island, South Halmahera Regency, North Maluku Province.
Through economic development, Lim Hariyanto Wijaya's company is committed to achieving three goals: SDG No. 2 zero hunger, SDG No. 5 gender equality, and SDG No. 8 decent work and economic growth. To achieve these goals, the Department Head of Community Affairs and Land Management, Latif Supriyadi, stated that Harita provides continuous guidance in agriculture, fisheries, and women's SME groups.
In detail, Harita provides continuous guidance to 15 farmer groups, 285 input providers, training, and market access in the field of agriculture.
"We carry out a number of community development and empowerment programs (PPM) that have a multifaceted impact on the economic life of the community on Obi Island and its surroundings. This creates a sustainable supply chain," said Latif. The Obi Food Security Center (Sentani) has produced 5.3 tons of rice per hectare from a total of 12 hectares of cultivated land. Additionally, the Akelamo Jaya Group produces horticulture through the cultivation of long beans, chili, and tomatoes.
Moreover, Obi Sehati serves as a center for horticulture and climate-resilient agribusiness with a focus on watermelon and melon cultivation.
Harita also implements the Progressive Livestock Farming Model (Impresif), which cultivates ducks, tomatoes, and chili peppers. The company also established Rumah Usaha Tangguh Ekonomi (Tough Economic Business House), which focuses on tofu and tempe cultivation and production, as well as the Salam Kawasi Integrated Agricultural Development Center.
In the fisheries sector, Harita encourages the formation and guidance of the Media Initiation and Activation of Freshwater Fish Entrepreneurship group or Mina Kita, as well as fishery development and processing. In the women's SME sector, the company supports the establishment of HOP Mart and Nyala Cafe, which involve 31 members of the Obi Snack Group and generate a daily turnover of IDR 15 million from 15 members.
"Through these economic development activities, we have opened up 574 job opportunities, involving 63 local suppliers, and generating transactions of IDR 8 billion per month," said Latif Supriyadi, the Department Head of Community Affairs and Land Management at Harita.
Furthermore, it should be noted that Harita holds a Mining Business License (IUP) and has had a saprolite nickel smelter since 2016. In 2021, they also established a limonite nickel processing and refining facility in the same operational area.
Both facilities were established to support the Indonesian government's downstreaming mandate by utilizing nickel mining products from PT Trimegah Bangun Persada (TBP) and PT Gane Permai Sentosa (GPS). Harita Nickel, through its subsidiary Halmahera Persada Lygend (HPAL), has become the first company in Indonesia to process and refine limonite nickel (low-grade) using high-pressure acid leaching technology. This innovative process is capable of producing mixed hydroxide precipitate (MHP), a valuable strategic product made from previously unused limonite nickel.
Harita Nickel is currently developing the next stage of the process, which involves further refining MHP into Nickel Sulfate (NiSO4) and Cobalt Sulfate (CoSO4), both of which are key raw materials for electric vehicle batteries. To finance this development, Harita's subsidiary PT TPB will carry out an initial public offering (IPO) worth IDR 9.7 trillion.
After the IPO, PT TBP will release up to 12.1 billion shares, equivalent to a maximum of 18% of the issued and paid-up capital, to the public at a nominal value of IDR 1,250 per share. The initial offering or book building of shares will take place from March 15-24, 2023, with the shares listed on the Indonesia Stock Exchange (IDX) expected to be available for trading by April 12, 2023. The IPO funds will be used to support the completion of project construction, increase production capacity, partially repay loans, and provide additional working capital for the company.