Indonesia\u2019s dependence on sulphur imports is beginning to threaten\nthe sustainability of its nickel downstreaming industry. Disruptions to\nthe global supply chain, particularly from the Middle East region, could\npotentially disrupt the operations of nickel processing plants based on\nhydrometallurgy.<\/p>\n
Chairman of the Indonesian Nickel Industry Forum (FINI), Arif Perdana\nKusumah, revealed that around 75-80% of Indonesia\u2019s sulphur import needs\nin 2025 come from the Middle East. From a total of approximately 5.3\nmillion tonnes of imports, the largest portion is supplied by countries\nin that region.<\/p>\n
\u201cThis highly concentrated supply, following the closure of the Strait\nof Hormuz, will result in disruptions or even the complete cutoff of the\nmain raw material source for HPAL refineries in Indonesia,\u201d he told CNBC\nIndonesia on Thursday (23\/4\/2026).<\/p>\n
Arif stated that sulphur is a crucial component in the nickel\ndownstreaming industry, particularly for producing sulphuric acid used\nin the leaching process at High Pressure Acid Leaching (HPAL)-based\nprocessing facilities.<\/p>\n
\u201cProduction of MHP (Mixed Hydroxide Precipitate) battery-grade nickel\nusing HPAL technology is highly dependent on sulphuric acid,\u201d he\nsaid.<\/p>\n
In terms of requirements, the industry needs around 10-12 tonnes of\nsulphur to produce 1 tonne of nickel in the form of MHP. This makes\nsulphur one of the largest cost components in the HPAL production\nprocess.<\/p>\n
\u201cAs the largest producer of nickel-cobalt material (MHP) from HPAL\nprojects, Indonesia is highly dependent on sulphur imports from the\nMiddle East,\u201d he said.<\/p>\n
As is known, the government has begun to be wary of potential\ndisruptions in the sulphur supply chain that could impact the nickel\ndownstreaming programme. This became apparent after the Chairman of the\nNational Economic Council (DEN), Luhut Binsar Pandjaitan, met with\nPresident Prabowo Subianto at the State Palace.<\/p>\n
In that meeting, Luhut conveyed several recent developments,\nincluding risks from prolonged global conflicts that could affect the\nenergy and strategic commodities sectors.<\/p>\n
Through a post on his personal Instagram account @luhut.pandjaitan<\/span>,\nhe stated that over the next three months, Indonesia\u2019s economic growth\nand activity would remain relatively stable.<\/p>\n Nevertheless, the government has prepared scenarios to anticipate\nvarious possibilities in facing a worsening global situation.<\/p>\n \u201cEspecially if this global conflict lasts longer than we anticipated.\nOne of the things we are monitoring is the surge in energy prices,\u201d\nLuhut explained, quoted on Thursday (23\/4\/2026).<\/p>\n In addition, the government is also monitoring potential disruptions\nin the supply chain of other important commodities, particularly\nsulphur. Luhut assessed that this commodity plays a crucial role in the\nnickel downstreaming process as well as the development of electric\nvehicle batteries in Indonesia.<\/p>\n \u201cBesides energy, we are also monitoring disruptions in the supply\nchain of other strategic commodities; such as sulphur, which is crucial\nfor nickel downstreaming and electric vehicle batteries,\u201d he said.<\/p>",
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"sponsor": "Okusi Associates",
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