JAKARTA \u2014 A proposed moratorium on the construction of nickel\nsmelters producing semi-finished goods should be geared towards\nstrengthening the national mineral downstreaming agenda. The government\nneeds to promote the development of higher-value products without\ncreating regulatory and investment uncertainty.<\/p>\n
Bisman Bakhtiar, executive director of the Centre for Energy and\nMining Law Studies (PUSHEP), said a moratorium could be consistent with\nthe downstreaming agenda. However, the government needs a clear roadmap\nto determine the direction of the nickel industry\u2019s development.<\/p>\n
\u201cA moratorium can go hand in hand with downstreaming, and even be\naligned with it, but it needs to be directed towards developing products\nwith higher added value. This is not about stopping downstreaming. The\ngovernment needs to draw up a clear roadmap so policy changes do not\ncreate regulatory and investment uncertainty,\u201d Bisman told nikel.co.id\non Friday (16 October 2026).<\/p>\n
He said restrictions on the construction of certain processing\nfacilities must not be interpreted as ending the downstreaming process.\nInstead, the policy should form part of an effort to reorganise the\nindustry so that nickel production increasingly focuses on higher-value\nproducts.<\/p>\n
A measurable roadmap is also needed to give businesses certainty as\nthey draw up plans and make investment decisions. Policy changes must\nalso remain aligned with the goal of increasing the value added of\nminerals domestically.<\/p>\n
PUSHEP calls for transparent moratorium criteria<\/strong><\/p>\n Bisman also urged the government to set transparent criteria for the\nmoratorium and apply them equally to businesses. Legal certainty, he\nsaid, must underpin decisions about which facilities would be subject to\nrestrictions.<\/p>\n The government should also establish transition arrangements for\nsmelter projects that have already obtained permits. This is important\nto safeguard investment certainty and reduce the risk of legal disputes\narising from policy changes.<\/p>\n Controls on nickel ore production and smelter capacity should also be\ndesigned in an integrated way with the development of downstream\nindustries.<\/p>\n This would allow supply-control measures to take account of\nraw-material requirements, processing capacity and the direction of\nend-product development.<\/p>\n \u201cThe principle is that controlling oversupply must go hand in hand\nwith legal certainty and investment protection, in order to optimise\nnickel\u2019s added value for the national interest,\u201d he said.<\/p>\n Bisman said clear regulations and consistent application of the\ncriteria would be essential to implementing the moratorium. The policy\nis intended to curb excess supply without obstructing the development of\nIndonesia\u2019s nickel industry.<\/p>\n Government considers moratorium on semi-finished product\nsmelters<\/strong><\/p>\n Energy and Mineral Resources Minister Bahlil Lahadalia, who also\nserves as coordinating minister for downstreaming and the energy\ntransition, previously said the government was considering a moratorium\non the construction of smelters that continue to produce semi-finished\ngoods.<\/p>\n The proposal is being considered amid a global nickel oversupply\nreportedly reaching around 2.5 million tonnes, which has also put\npressure on international nickel prices.<\/p>\n Bahlil said the government wanted to reduce production of\nsemi-finished goods and encourage industries that produce finished\ndownstream goods directly.<\/p>\n \u201cThere is an oversupply, which is why prices are falling. We can\nconsider starting to minimise semi-finished industries, and perhaps even\nimpose a moratorium, while promoting industries that produce downstream\ngoods directly,\u201d Bahlil said.<\/p>\n The proposal puts supply controls and downstream development on\nparallel tracks. From PUSHEP\u2019s perspective, implementation should also\nbe supported by legal certainty, transparent criteria and protection for\nexisting investments.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/nickel-smelter-moratorium-must-continue-to-support-downstreaming-1792385416",
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