Indonesia Accelerates Downstream Push, Sets Target of 170 Nickel Smelters
Mon 08 Dec 2025, 07:55 AM
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The government has in recent years aggressively advanced downstreaming projects, particularly for nickel. The latest data show that Indonesia now operates 79 units. With projects under construction and in planning, the total number of nickel smelters in Indonesia is estimated to reach 170 units.
Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot noted that there are currently 365 nickel Mining Business Licenses (IUP) across six provinces: Central Sulawesi, Southeast Sulawesi, South Sulawesi, Maluku, North Maluku, and Southwest Papua. As for domestic nickel processing (smelters), there are 79 operating units, 74 under construction, and 17 in the planning and permitting stage.
He conveyed this at the Forum of Nickel-Producing Provincial Regional House of Representatives (DPRD), held at the Central Sulawesi DPRD Office in Palu, Central Sulawesi, on Sunday (Dec 7, 2025).
The forum comprised five provincial DPRDs: Central Sulawesi, Southeast Sulawesi, South Sulawesi, North Maluku, and Southwest Papua.
Domestic nickel processing, he said, is part of downstreaming and an implementation of Law No. 2 of 2025—the fourth amendment to Law No. 4 of 2009 on Mineral and Coal Mining—which mandates that all mineral commodities must be processed domestically.
“This aligns with President Prabowo’s Asta Cita priorities to continue downstreaming and industrialization of commodities at home. Downstreaming is part of our national self-reliance strategy and the foundation for achieving Golden Indonesia 2045, based on value-added economic transformation,” he explained.
Yuliot stated there has been a significant increase in domestic value added since the export ban on nickel ore was imposed in 2020. In 2017, nickel and derivative exports generated only USD 3.3 billion, while in 2024 the value jumped more than tenfold to USD 33.9 billion.
“By 2040, the downstreaming program is projected to contribute around USD 618 billion in investment, create 3 million new jobs, and significantly boost GDP and export value,” Yuliot said.
Even so, Yuliot stressed that mineral processing must be carried out according to good mining practice, including post-operation environmental management to address and remediate any pollution or environmental damage, as well as to control the carbon emissions produced.
On the same occasion, Central Sulawesi DPRD Speaker Mohammad Arus Abdul Karim said the initiative to establish the Nickel-Producing DPRD Forum is intended as a channel for nickel-producing provinces to voice their aspirations regarding the commodity.
“This forum is a platform to unify the voices and steps of local representatives together with the executive and all stakeholders so that the interests of nickel-producing regions are heard and accommodated in national policy,” he concluded.
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