ICIEC supports USD 62.5 Million sustainable nickel processing investment in Indonesia through reinsurance collaboration
ICIEC supported strategic cross-border investment into Indonesia through a USD 62.5 million facultative reinsurance cover provided to China Export & Credit Insurance Corporation (Sinosure) for the Obi Laterite Nickel Ore Hydrometallurgy Project. The policy has a tenor of approximately 4.5 years and reinsures Overseas Investment (Equity) risks, including Inconvertibility and Transfer Restriction, Expropriation, and War and Political Violence.
ICIEC’s involvement in this transaction highlights its dedication to constructive partnerships, broadening underwriting capacity for large overseas investment portfolios and reinforcing investor confidence in regions susceptible to non-commercial risks. This approach enhances project bankability and ensures continuous capital deployment, aligning with ICIEC’s multilateral mandate and robust governance standards. The initiative facilitates investments that strengthen industrial value chains, encourage technology and skills transfer, and support employment and broader economic benefits within Member States.
ICIEC’s reinsurance participation is expected to deliver substantial development impact by mobilising and retaining long-tenor foreign direct investment (FDI) into OIC Member States like Indonesia. By mitigating key non-commercial risks, the cover strengthens the project’s bankability and supports capital permanence, enabling sponsors to proceed with investment and sustain operations with greater certainty. This risk-sharing mechanism is anticipated to attract additional financing, accelerate industrial value addition through local processing and downstream linkages, and contribute to foreign exchange generation via higher-value exports. This project also aligns with several United Nations Sustainable Development Goals (SDGs), including SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 12 (Responsible Consumption and Production), SDG 16 (Peace, Justice, and Strong Institutions), and SDG 17 (Partnerships for the Goals).
This alignment reflects ICIEC’s dedication to global sustainable development objectives. In essence, the ICIEC-Sinosure partnership on the Obi Laterite Nickel Ore Hydrometallurgy Project exemplifies a successful model for de-risking critical investments and driving sustainable development, securing a vital project in Indonesia’s nickel sector and setting a precedent for future collaborations aimed at bolstering economic resilience and prosperity across OIC Member States.
