Sales of Nickel Ore in Morowali Encourage Regional Economic Contribution, PT Vale Affirms Commitment to Grow Together with the Community

MOROWALI, WN—Sales of nickel ore in Morowali, Central Sulawesi) Central Sulawesi) encourage regional economic contribution, PT Vale emphasizes its commitment to grow with the community.
Morowali, Central Sulawesi is one of the centers of the nickel-based extractive industry which is growing rapidly in Indonesia. This was conveyed by Vanda Kusumaningrum
Head of Corporate Communications
PT Vale Indonesia Tbk to journalists through a press release on (16/10/2025).

Nickel is currently a global strategic commodity because it is the main raw material for electric vehicle batteries, which is an important pillar in the transition to global clean energy. With the largest nickel reserves in the world, Indonesia occupies a strategic position in the supply chain of the future energy industry. As part of the National Strategic Project (PSN), the presence of PT Vale Indonesia Tbk (PT Vale), a member of the Mining Industry (MIND ID) group through its development project Indonesia Growth Project (IGP) Morowali has an important role in strengthening the national nickel supply chain, while ensuring that natural resource management is carried out responsibly, transparently and sustainably.

Nickel ore (ore) production and sales activities carried out in the Morowali Regency area not only support the national industrialization agenda, but also become a driver of regional economic contribution. This step emphasizes PT Vale’s commitment to grow and develop together with the community, especially in the 13 assisted villages in Bahodopi and East Bungku Districts.

All PT Vale operational activities are carried out by prioritizing the principles of good governance and compliance with all applicable laws and regulations. As the holder of a Special Mining Business License (IUPK), PT Vale always fulfills its obligations by paying Non-Tax State Revenue (PNBP), royalties and other taxes as a contribution to state revenue. Through a revenue sharing mechanism regulated by the central government, part of the income is reallocated to producing regions, including the Morowali Regency Government, in the form of Profit Sharing Funds (DBH) for the mineral mining sector.

PT Vale’s contribution to Morowali Regency’s Original Regional Income (PAD) from 2023 to September 2025 has reached IDR 43 billion. This trend has increased since the sale of nickel ore from Morowali Regency in the second semester of 2025 where the royalties paid by PT Vale to the Government of the Republic of Indonesia amounted to IDR 84 billion, which of course is expected to continue to increase this income. This reflects the direct function and role of PT Vale’s strategic projects in strengthening regional fiscal foundations, as well as supporting the economic growth of local communities.

“We understand and appreciate the concerns of the Bahomotefe community regarding fees for sharing profits from the sale of ore. Based on the provisions of applicable laws and regulations, including the Mineral and Coal Law, PT Vale as the IUPK holder, has the obligation to make profit sharing payments from the company’s net profits each year. The profit sharing payments are then made to the Central Government and Regional Governments in accordance with the percentages that have been regulated based on the Regulations,” explained Wafir, Head of Bahodopi Project IGP Morowali.

“Every ton of ore produced and sold in the Morowali region not only reflects the sustainability of the company’s business, but is also part of a real contribution to increasing regional income. We ensure that the economic benefits of this project are truly felt by the community and the Morowali Regency Government,” added Wafir.

Apart from fiscal contributions, PT Vale is also committed to ensuring that the economic benefits of the project are felt in real terms by the community through various empowerment and social development programs by continuing to strengthen the Community Development and Empowerment Program (PPM) which is carried out in line with the Regional Medium Term Development Plan (RPJMD) of Morowali Regency. This program includes support for education, health, skills training, local economic development and village infrastructure development in the mining area including Bahomotefe Village. It is recorded that from 2015 to the fourth quarter of 2025, PT Vale has disbursed PPM funds amounting to IDR 70 billion spread across all assisted villages as proof of its social investment commitment.

“The success of the mining industry is not only measured by production results, but by the extent to which its presence is able to open up opportunities and bring positive change to the surrounding community,” stressed Wafir.

With the spirit of collaboration and sustainability, PT Vale is always committed to continuing to strengthen partnerships with all stakeholders, ensuring that every development step is in line with the national goal of realizing nickel downstreaming that is competitive and has an impact on the welfare of the people of Morowali and Indonesia.(**)

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