Jakarta—The Prabowo-Gibran administration’s challenge is to ensure that their priority nickel downstream industry is managed sustainably, Katadata Insight Center said on Monday, September 30. Indonesia, home to 42% of the world’s nickel reserves, is well-positioned to dominate the global market.
According to Eddy Soeparno, Deputy Chairman of the Prabowo-Gibran campaign team, Indonesia’s nickel exports brought in IDR 106.59 trillion in 2023. “Sustainable nickel downstream is one of the main focuses to achieve 8% economic growth. The challenge is how to ensure that the Indonesian government in the future implements nickel downstreaming in a sustainable manner,” he said.
Nickel downstreaming, which has seen significant growth since Indonesia’s ban on raw nickel exports in 2020, is expected to continue expanding. In 2023, Indonesia supplied 55% of the global nickel market, a figure projected to rise to 64% by the end of 2024.
The administration aims to leverage this growth to support the energy transition, particularly through the production of electric vehicle (EV) batteries. However, Soeparno stressed the importance of balancing economic growth with environmental, social, and governance (ESG) principles, including reducing the industry’s reliance on coal-fired power plants.
Expert recommendations, including those from Katadata Insight Center, emphasise the need for sustainable practices such as controlling nickel smelter investments, adopting renewable energy, and ensuring post-mining land reclamation. By addressing these concerns, Indonesia hopes to not only lead the global nickel market but also contribute to global efforts to reduce carbon emissions and promote a green economy.
Ferry Latuhihin, Climate Policy Advisor to the Prabowo-Gibran team, added that sustainable nickel downstreaming aligns with Indonesia’s broader goal of capitalizing on its natural resources while contributing to the global green economy and fulfilling its Paris Agreement commitments. (nsh)
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