Indonesian Political, Business & Finance News

Energy Minister Defends Indonesia's Nickel Downstreaming Against "Dirty" Accusations

| Source: GALERT
Jakarta — Energy and Mineral Resources Minister Bahlil Lahadalia has responded to various protests labelling Indonesia's nickel downstreaming as "dirty". The criticism suggests that the country's nickel industry is not environmentally friendly or sustainable, linking it to issues of deforestation, water and soil contamination, and social impacts on communities.

Addressing the accusations, Bahlil remarked that nickel is naturally found in the ground, not on a mattress. "Many people protest, saying Indonesian nickel is dirty. I say, there's no such thing as nickel that sleeps on a soft mattress. Of course nickel involves soil. People make up all sorts of things," Bahlil said at the Human Capital Summit 2025 at JCC Senayan, Central Jakarta, on Tuesday (3 June 2025).

Nevertheless, Bahlil acknowledged there are many shortcomings that need to be addressed in the downstreaming programme. The former Investment Minister and head of the Investment Coordinating Board (BKPM) argued that no country in the world has achieved immediate success in implementing a major programme.

Bahlil also affirmed that he would not retreat even an inch despite foreign pressure on downstreaming. He declared Indonesia a sovereign nation that cannot be dictated to by other countries.

"As Energy and Mineral Resources Minister, I will not retreat even an inch from foreign pressures to continue our downstreaming programme, not at all. Our country is an independent nation, and our independence was seized, not given," Bahlil stressed.

"Our country gained independence through the sacrifice of body and soul, unlike other countries that were granted independence. And because of that, there is no reason for other countries to dictate to our nation, because we have never dictated to other countries either," he added.

As such, Indonesia will continue its downstreaming programme despite the many challenges. Nickel itself is classified as a critical mineral, with 43 per cent of global reserves located in Indonesia. Through nickel downstreaming, the country has successfully increased revenue from US$3.3 billion in 2017–2018 to US$34 billion in 2024.

Currently, Bahlil said, Indonesia has also become one of the world's largest exporters of nickel products.
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