Indonesia’s nickel production has surged, driving growth in the commodity transportation business.
Indonesia’s nickel production has continued to grow significantly year after year. In 2018, production stood at only 606 million tons. By 2022, Indonesia’s nickel ore production had reached 1.6 million tons.
The nickel mining boom in Indonesia has brought distinct benefits to the maritime commodity transportation business. This is especially evident following President Joko Widodo’s downstreaming (hilirisasi) policy, which bans the export of raw nickel materials. One direct impact of this regulation has been the emergence of new domestic shipping routes to serve the transportation of nickel commodities.
Below are several publicly listed shipping companies that have directly benefited from the increased demand for transporting nickel production in Indonesia.
Joint Venture Between PT Trans Power Marine Tbk (IDX: TPMA) and a Tsingshan-Affiliated Company, One of the Largest Nickel Players in Indonesia
TPMA conducts its nickel-related transportation services through its subsidiary, PT Trans Logistik Perkasa.
Established in 2014, Trans Logistik Perkasa initially operated in coal transportation services. Over time, in late 2021, TPMA sold a 70% stake in Trans Logistik Perkasa to PT Pacifik Pelayaran Indonesia and T&J Industrial Holding Limited. Following this corporate action, the company’s business direction shifted toward nickel commodity transportation.
T&J Industrial Holding is part of Tsingshan, one of the largest nickel players in Indonesia.
In 2023, PT Trans Logistik Perkasa contributed net profit of USD 1,176,287 to TPMA. Compared with TPMA’s total pre-tax profit of USD 20,494,761, the net profit contribution from Trans Logistik Perkasa accounted for 5.74% of total pre-tax profit.
In that year, PT Trans Logistik Perkasa operated a fleet of 97 vessels focused on nickel ore transportation. Through the joint venture between TPMA and T&J Industrial Holding, PT Trans Logistik Perkasa enjoys greater certainty in securing nickel commodity transportation contracts.
PT Pelayaran Nelly Dwi Putri (IDX: NELY): Revenue from Nickel Commodity Transportation Increased by 274.07%
PT Pelayaran Nelly Dwi Putri (NELY) is one of the transportation service partners of PT Teknik Alum Service, a company engaged in the nickel commodity business.
PT Teknik Alum Service (TAS) was established in 2009 and later acquired by PT Anugrah Tambang Sejahtera, a subsidiary of Silkroad Nickel Ltd. TAS holds a nickel mining license in Central Sulawesi with a concession area of up to 1,301 hectares. In addition, TAS has a cooperation agreement as a mining operator with Sinohydro Corporation Ltd and PT Sepco II Indo. Under the agreement signed in 2019, one of TAS’s responsibilities is to ensure the transportation of nickel ore with a minimum production level of 1.2 million tons of nickel ore per year.
In 2022, NELY’s revenue from PT Teknik Alum Service amounted to IDR 27 billion. In 2023, this figure increased by 274.07% to IDR 101 billion.
Compared to NELY’s total revenue in 2023 of IDR 522 billion, the contribution from nickel transportation was quite significant, accounting for 19.35%.
PT Mitrabahtera Segara Sejati Tbk (IDX: MBSS): Significant Revenue Growth from Nickel Commodity Transportation
PT Mitrabahtera Segara Sejati Tbk (IDX: MBSS) began entering the nickel commodity transportation business in 2022. This was confirmed by MBSS Director Maria Anggar Kusumawati, who stated that the company was exploring nickel cargo transportation as part of efforts to ensure long-term business sustainability.
According to the financial statements as of March 31, 2023, MBSS reported that nickel commodity transportation contributed 20% of the company’s total revenue. The remaining 80% was still derived from coal transportation services.
In its Q4 2023 financial report, MBSS did not explicitly disclose revenue from nickel transportation, either in revenue segmentation or in the list of customers contributing more than 10% of net revenue. However, assuming the 20% revenue contribution reported in Q1 2023 remained consistent throughout 2023, total revenue from nickel commodity transportation for the year would amount to USD 12.6 million, out of total revenue of USD 63 million.
To ensure the sustainability of coal and nickel transportation service contracts, MBSS has adopted a strategy of engaging directly with tier-1 coal and nickel producers.
PT IMC Pelita Logistik Tbk (IDX: PSSI): Focused on Coal Transportation, with Nickel Transport Accounting for 5–8% of Total Services
While many shipping companies are seeking to increase nickel transportation as part of business diversification, PT IMC Pelita Logistik Tbk (PSSI) remains committed to its core coal transportation business, despite rising demand for nickel transport services.
PSSI Director Harry Tjhen stated that the proportion of nickel transportation to the company’s total transportation services was only around 5–8% in 2023.
PSSI’s total revenue in 2023 amounted to USD 102 million. If 5% of this figure was derived from nickel transportation services, then the contribution from nickel transportation to PSSI in 2023 would be approximately USD 5.1 million.
Harry Tjhen further explained that the company prefers to focus on coal transportation rather than nickel due to the higher operational risks associated with nickel transport. In addition to the highly volatile nickel market, nickel cargo handling requires more complex processes than coal transportation. Nickel transport is still conducted conventionally, with heavy equipment entering barges, and water saturation is a significant factor.
