Indonesian Nickel Processing Giant Harita Group Plans $1.5 Billion IPO

Indonesia's Largest Mining IPO in Years

PT Trimegah Bangun Persada, the nickel processing subsidiary of Indonesia's Harita Group, filed a prospectus with the Indonesia Financial Services Authority for an initial public offering targeting gross proceeds of approximately 23 trillion rupiah ($1.5 billion). The offering, expected to price in March, would be the largest mining-sector IPO on the Indonesia Stock Exchange since 2018.

The company plans to sell a 15% to 20% stake at a valuation of roughly $8 billion. Mandiri Sekuritas, Morgan Stanley, and CIMB Securities have been appointed as joint lead managers.

Integrated Nickel Operations

Harita's nickel operations span mining, smelting, and processing at its industrial complex on Obi Island in North Maluku province. The facility, which began production in 2021, currently produces 85,000 metric tons per year of nickel in mixed hydroxide precipitate (MHP), a key precursor for lithium-ion battery cathodes.

The company is expanding capacity to 120,000 metric tons by mid-2027 through the construction of two additional high-pressure acid leach (HPAL) lines. The expansion will be partially funded by IPO proceeds.

Supply Contract With CATL

Harita holds a long-term supply agreement with Contemporary Amperex Technology Co. (CATL), the world's largest battery manufacturer, which invested approximately $500 million in the Obi Island complex through its subsidiary Ningbo Brunp-CATL. The partnership guarantees offtake of a significant portion of Harita's MHP production through 2030.

"Harita benefits from Indonesia's downstream nickel processing policy and a blue-chip offtake partner," said Amanda Lacaze, mining analyst at Goldman Sachs in Singapore. "The risk is nickel price volatility — LME nickel has fallen 35% from its 2022 peak and currently trades at approximately $16,000 per metric ton."

Indonesia's Nickel Dominance

Indonesia accounts for approximately 55% of global nickel production, a share that has grown rapidly since the government banned exports of unprocessed nickel ore in 2020 to encourage domestic value-addition. The policy has attracted over $30 billion in foreign investment into smelters and processing plants, primarily from Chinese companies.

However, the rapid expansion has faced criticism on environmental grounds. Nickel mining on tropical islands generates significant deforestation and tailings disposal challenges. Harita's prospectus disclosed that the company has spent approximately $180 million on environmental management, including deep-sea tailings disposal systems and reforestation programs.

Competitive Landscape

Harita would join several Indonesian nickel companies already listed on the Jakarta exchange, including Vale Indonesia, Aneka Tambang, and Merdeka Battery Materials. The sector has attracted growing interest from global investors seeking exposure to the electric vehicle supply chain.

PT Indonesia Battery Corporation (IBC), a state-owned entity established to consolidate the government's battery metal interests, is also considering an IPO in 2027, which could raise $2 billion to $3 billion.

Investor Appetite

Early marketing feedback suggests strong demand from sovereign wealth funds and ESG-focused investors, provided that Harita can demonstrate compliance with emerging sustainability standards such as the International Council on Mining and Metals framework and the EU Battery Regulation's due diligence requirements.

The Jakarta Composite Index has risen 4.2% year-to-date, and the Indonesian IPO market has seen a resurgence of activity, with 38 new listings in 2025 raising a combined 42 trillion rupiah.