TFIGlobal
TFIGlobal
TFIPOST English
TFIPOST हिन्दी
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
No Result
View All Result
TFIGlobal
TFIGlobal
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

Indonesia gobbles up China’s Aluminum market

Abhyoday Sisodia by Abhyoday Sisodia
December 24, 2021
in Indo-Pacific
Alluminium China Adaro Indonesia
Share on FacebookShare on X

The Chinese Communist Party has gained an image of a perpetual bully. Beijing has worked assiduously for this achievement, be it the aggressive debt diplomacy or the wolf warrior diplomacy. Its coercive diplomacy vis a vis its neighbourhood has also earned many enemies. In such a situation, any and every weakness will have many enthusiastic takers to capitalise on. China’s manufacturing sector has experienced a massive hit, reverse migration, power crisis as well as the pandemic being some of the major reasons for the same.

In such a scenario, the move by the European Union to discourage the import of Chinese steel and aluminium have made things worse for China. One such situation has presented itself to Indonesia and it is willing to make the most of it. Adaro Energy, a major Indonesian coal miner, announced plans to invest $728 million in an aluminium smelter and a second endeavour to establish a “new energy battery factory” on Thursday, marking the company’s first substantial movements away from coal.

Also Read

U.S. government will work to “aggressively revoke” visas of Chinese students-Marco Rubio

Macron’s Southeast Asia Tour: A Bid for Strategic Balance and Economic Ties

U.S. Warns of Growing Global Dangers in 2025 Threat Report

Exodus from China presents an opportunity for Indonesia

Just like the investors are moving away from China and looking for IPOs in countries like India, Vietnam, and Indonesia; the countries too are looking to move their strategic imports away from China. Realising the profitability, the Indonesian energy giant has stepped up to set up an aluminium smelting plant.

Adaro Aluminium Indonesia, a subsidiary of Adaro Energy, has signed a letter of intent to invest and build an aluminium smelter in a new industrial park being developed by the government in North Kalimantan Province on the island of Borneo, according to Adaro. President Joko Widodo has stated that he wants the area to become “the world’s largest green industrial complex.”

Adaro Energy Vice President Ario Rachmat said of the aluminium smelter investment, “Adaro is committed to transforming its operations through green initiatives in the long term.” “We believe that global demand for aluminium products, notably cables, batteries, and chassis, will continue to grow.”

Adaro stated it will work with local and international partners “who have the track record, expertise, cutting-edge technology, and extensive knowledge of the aluminium industry” to complete the aluminium project but did not name any of them. Separately, Rachmat told Nikkei Asia that the smelter’s construction would take two years, although he did not specify when it would begin. The smelter will manufacture aluminium ingots or sheets, he noted.

European Union’s shift away from China

At a time when Lithuania got close to Taiwan, Xi started a trade war and told the world— cut ties with Lithuania or we will cut ties with you. Xi fooled himself about his own economic might. He thinks that the entire world wants to trade with China and that the Chinese economy can be leveraged in foreign policy. But the truth is that the world wants to get rid of China and this is what the EU is now making him realise.

Read more: Jinping’s threats backfire: European Union blocks Chinese steel and Aluminium

Xi thought he would isolate Lithuania. But the EU decided to put all its weight behind its member country and took on China instead. On Wednesday, the EU official journal announced that that the EU will impose extra tariffs on aluminium foil coming from China. The European Commission found that the Chinese aluminium foil benefitted through excessive and unfair subsidies. The tariffs on thin-grade aluminium foil range between 8.6 and 18.2 per cent, over and above existing anti-dumping duties between 6 and 28.5 per cent. China uses such measures to dump its low quality, overproduced aluminium, and other heavy metals.

These tariffs coupled with the international community actively looking for manufactured goods elsewhere have rained bad news for the CCP. In such a scenario, Indonesia’s push towards rejuvenating its manufacturing sector can gain an enormous boost. In line with this, Indonesia’s President Joko Widodo said, the North Kalimantan industrial park is intended to host “high-tech” industries — including producers of sodium ion and lithium-ion batteries, semiconductors, petrochemicals, solar panels and industrial silicone products — and to support Indonesia’s “economic transformation” from heavy reliance on raw commodities to industrialization.

The vision of the Indonesian leader plus the current geo-economic situation presents Indonesia’s private sector to make some bold and smart bets. Adaro Aluminium Indonesia has made one such bet and as the Chinese economic prowess decreases, these early movers will reap the most dividends.

Tags: Adaro EnergyAluminiumCCPChinaIndonesiaShort takes
ShareTweetSend
Abhyoday Sisodia

Abhyoday Sisodia

M.A. in East Asian Studies, Department of East Asian Studies, the University of Delhi, India. Deep interest in geopolitics, foreign policy and world affairs.

Also Read

US Defense Secretary Urges Asian Allies: Boost Defence Spending

US Warns China at Shangri-La Dialogue: “We’re Ready to Fight and Win”

May 31, 2025
Trump mulls troop withdrawal from South Korea, Indo Pacific up for grabs?

Trump mulls troop withdrawal from South Korea, Indo Pacific up for grabs?

May 23, 2025
Turmoil in Philippines continues as the Duterte and Marcos families battle it out in the elections

Turmoil in Philippines continues as the Duterte and Marcos families battle it out in the elections

May 15, 2025
North Korea successfully test-fires surface-to-air missile

North Korea successfully test-fires surface-to-air missile, as South Korea and the United States conduct joint military drills

March 22, 2025
A New Alliance in Making, Philippines invites India to Join 'Squad'

Philippines invites India and South Korea to Join ‘Squad’ to deter Chinese Influence in its region

March 21, 2025
China Response to US Accusations on Fentanyl Trade

“US should say thank you”: China Rejects US Accusations on Fentanyl Trade

March 13, 2025
Youtube Twitter Facebook
TFIGlobalTFIGlobal
Right Arm. Round the World. FAST.
  • About Us
  • Contact Us
  • TFIPOST – English
  • TFIPOST हिन्दी
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy

©2025 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIPOST English
TFIPOST हिन्दी

©2025 - TFI MEDIA PRIVATE LIMITED

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.