This story appears in the December 2024 issue of Forbes Asia. Subscribe to Forbes Asia
Kiki Barki.
Jin Liangkuai/NEWSCOMThis story is part of Forbes’ coverage of Indonesia’s Richest 2024. See the full list here.
Kiki Barki, whose coal mining riches made him a billionaire, is shifting his Harum Energy’s focus into nickel, which is used to power electric vehicles. Global EV sales, led by China, are booming and rose by 24% in the first ten months this year, according to London-based research firm Rho Motion.
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Nickel contributed only 11% to Harum’s 2023 revenue of $926 million but according to an October report by financial services firm Nomura, that could jump to more than 80% over the next three years. The company’s nickel expansion picked up pace this year with a flurry of dealmaking. In January, it increased its stake in Indonesian nickel smelter Westrong Metal Industry to nearly 81% for $215 million. In April, its subsidiary Tanito Harum Nickel (THN) paid $206 million for 51% of Blue Sparking Energy, which is building a refining facility to produce 67,000 tons of nickel annually by 2026.
To help speed up its nickel play, Harum struck a partnership in September with Chinese metals billionaire Xiang Guangda’s Eternal Tsingshan Group, which acquired 49% of its nickel units under THN for $412 million. Joining forces with Tsingshan will also unlock future asset opportunities, noted the Nomura report.