Indonesia and Philippines Agree on Cooperation in the Nickel Industry
Coordinating Minister for the Economy Airlangga Hartarto stated that the Memorandum of Understanding (MoU) for Strategic Nickel Industry Development Cooperation serves as a structured platform connecting Indonesia’s downstream processing and smelter strengths with the upstream nickel ore supply from the Philippines.
“This collaboration is more than just an ordinary partnership. It is the foundation for the Indonesia-Philippines Nickel Corridor,” said Airlangga in an official statement on Friday, 8 May 2026.
Alongside the Philippine Secretary of Trade and Industry, Hon. Maria Cristina A. Roque, Airlangga witnessed the signing of the MoU for Strategic Nickel Industry Development Cooperation between the Indonesian Nickel Miners Association (APNI) and the Philippine Nickel Industry Association (PNIA).
The signing took place as part of the Indonesia-Philippines High Level Business Roundtable at the Jpark Island Resort in Cebu on Thursday, 7 May 2026. This high-level business forum was held concurrently with President Prabowo Subianto’s official visit to the Philippines to attend the 48th ASEAN Summit, and serves as a concrete follow-up to discussions on regional economic cooperation at the 27th AECC Summit held on 6-7 May 2026.
Based on 2026 data from the United States Geological Survey (USGS), Indonesia and the Philippines together control 73.6% of global nickel production in 2025. Indonesia contributes around 66.7%, or 2.6 million tonnes, while the Philippines accounts for 6.9%, or 270,000 tonnes. In terms of reserves, Indonesia holds 44.5% of the world’s nickel reserves, amounting to 62 million tonnes, whereas the Philippines has 3.4%, or 4.8 million tonnes.
Throughout 2025, the total value of Indonesia’s exports to the Philippines reached US$10.22 billion, equivalent to 8.4% of the Philippines’ total imports. Therefore, Indonesia is the third-largest trading partner for the Philippines after China and Japan.
Airlangga stated that the Philippines is a crucial strategic trading partner for Indonesia in Southeast Asia, particularly for energy commodities and automotive products. He assessed that cooperation between the two countries will become an inseparable pillar of global nickel reserves and production.
He explained that the MoU between APNI and PNIA encompasses a strategic, long-term oriented scope of cooperation, including the exchange of information to stabilise regional and global nickel trade. It also covers joint development of nickel downstream technologies, utilisation of added value from industrial processing by-products, and collaborative human resource development to support a sustainable nickel industry ecosystem.
Airlangga elaborated that Indonesia currently has a massive nickel downstream ecosystem, with exports of processed nickel products reaching US$9.73 billion in 2025. Projections include investments up to US$47.36 billion and the absorption of 180,600 workers targeted by 2030.
These smelters require a stable supply of ore with the appropriate silicon-to-magnesium ratio (Si:Mg), which can be met by Philippine nickel ore through blending processes.
In this way, he said, the Philippines will no longer be just an exporter of raw ore. The Philippines will be integrated into a higher regional value chain, while Indonesia gains supply security (feedstock security) for its upstream battery and stainless steel industries. According to Airlangga, this cooperation aligns with the directives from the 27th AECC Summit to strengthen critical supply chains in the ASEAN region.
Airlangga emphasised that nickel is a critical mineral with a central role in the energy transition. Nickel derivatives can be integrated into national and regional energy resilience strategies through enhanced energy storage, both for electric vehicle (EV) batteries and solar panel energy storage batteries.
Thus, according to him, nickel downstream processing not only supports the industrial sector but also directly contributes to a clean and sustainable energy mix.
To accelerate downstream processing and strengthen the competitiveness of the nickel industry, the Indonesian Government is also continuing to promote the development of integrated Special Economic Zones (SEZs) with critical mineral supply chains.