Indonesia Forges Ambitious Path to Global Green Nickel Dominance
Jakarta, Indonesia – Indonesia is aggressively pursuing its vision to become a global leader in the electric vehicle (EV) battery and stainless steel industries, driven by a comprehensive Nickel Downstream Industry Roadmap. This strategic blueprint, spanning 2022 to 2040, outlines an ambitious plan to transform the nation’s vast nickel resources into high-value derivative products, marking a significant step in accelerating Indonesia’s green industrial transformation. The initiative aims to enhance the value-added from raw materials domestically, rather than exporting raw ore, and establish an end-to-end EV ecosystem across key regions like Central Sulawesi, Southeast Sulawesi, North Maluku, Karawang, and Subang.
The roadmap is poised to attract substantial investment, with a projected US$618.1 billion in investment potential by 2040. This massive influx is expected to create an impressive 3 million jobs across the nickel value chain.
A clear indicator of this strategy’s early success is the eight-fold surge in nickel product export value. Exports escalated from USD 3.3 billion in 2017 to USD 33.9 billion in 2024, directly attributable to the downstreaming efforts. This rapid growth follows Indonesia’s strategic nickel export ban in 2020, designed to compel in-country processing and value creation.
Indonesia’s ultimate goal is to rank among the top 5 global producers of EV batteries and the top 2 producers of stainless steel by 2040. The roadmap includes detailed targets for increased production of key nickel derivatives such as MHP (Mixed Hydroxide Precipitate), nickel sulphate, precursor, cathode materials, and battery cells and packs, with phased increments stretching to 2040. This systematic approach ensures the development of a robust nickel industry ecosystem, with careful analysis of value-added potential and global supply-demand trends guiding industry choices.
According to the presentation by Rizwan Aryadi Ramdhan, Director of Downstream Industry for Mineral and Coal, Indonesia’s overarching strategy for the nickel sector is deeply integrated with the national agenda for industrial acceleration. The focus is on leveraging nickel to strengthen national energy self-sufficiency and increase foreign exchange potential, contributing to a “Green and Productive Economy”.
The broader context for this aggressive downstreaming push is Indonesia’s “Asta Cita” (Eight Missions), which aims to achieve “Golden Indonesia 2045”. Downstream industrialization is explicitly highlighted as a top priority within this national vision. This strategy is also crucial for meeting the presidential target of 8% economic growth, which requires a significant investment of IDR 13,032.8 trillion over five years (2025-2029). The first semester of 2025 already saw an investment realization of IDR 942.9 trillion, with the base metal and metal goods industry leading the subsectors.
The stakes are high for Indonesia: achieving energy sovereignty, fostering sustainable national development, and transforming into a high-income country. The World Bank indicates that Indonesia must strengthen technology adoption and focus on innovation to reach this status. The government, through the Ministry of Investment and Downstream Industry (MIDI/BKPM), is providing extensive support, including end-to-end services for investors and competitive incentives such as tax holidays and super tax deductions, to facilitate this transformation.
As Indonesia progresses through this ambitious roadmap, continued investment and adherence to the strategic targets will be critical. The nation’s commitment to developing its nickel processing capabilities signals a clear intent to move up the global value chain, promising significant economic growth and a prominent role in the future of green energy.
