From Nickel Ruler to Market Value Determiner

Many countries possess abundant resources and large production shares, yet they fail to become the parties that determine the economic value of their commodities. In less than a decade, Indonesia has transformed nickel from an export commodity into one of the world’s strategic industrial pillars. From Sulawesi to North Maluku, commodities that previously left ports primarily as raw materials are now the backbone of a processing industry that supplies global energy transition needs.

This shift is reflected not only in increased production or heavy investment but also in Indonesia’s changing position within the global supply chain. Whereas Indonesia previously followed market dynamics, decisions made in Jakarta are now being taken into account by industry players, investors, and governments worldwide. The Ministry of Energy and Mineral Resources notes that approximately 65 per cent of the world’s nickel supply originates from Indonesia. This figure demonstrates that Indonesia is no longer merely a holder of large reserves, but has evolved into one of the most influential players in the industry supporting the development of batteries and electric vehicles.

This transformation did not happen by chance. Downstreaming policies, which restrict the export of raw materials and encourage the development of domestic processing industries, have altered the structure of the national nickel economy in a relatively short period. Indonesia, previously known as a supplier of raw materials, has now emerged as the world’s largest nickel production hub. However, the success of building industrial capacity is only one part of the journey. The next challenge is far more complex: ensuring that Indonesia does not just serve as a production centre, but also participates in determining the economic value created within that industrial chain.