Nickel Downstream Investment Reaches Rp 41.5 Trillion, North Maluku Projected to Become a Global Benchmark

Nickel downstreaming continues to be the primary engine for mineral processing investment in Indonesia. In the first quarter of 2026, realised downstream sector investment reached Rp 147.5 trillion, with nickel as the main contributor, absorbing approximately Rp 41.5 trillion. However, the success of downstreaming is no longer measured solely by the volume of investment and production capacity. The industry is also being required to meet sustainability standards, which are increasingly becoming a prerequisite for accessing the global market. This issue was highlighted in the discussion ‘Responsible Downstreaming at Scale: North Maluku Sustainable Experience’ held by the Kadin UK and Ireland Bilateral Committee as part of the Indonesia Critical Minerals Conference 2026. Kadin UK and Ireland Bilateral Committee Head of Energy and Mineral Resources, Ovan Tito, stated that the committee, along with several stakeholders, had visited the Indonesia Weda Bay Industrial Park (IWIP) in North Maluku to see first-hand the development of the national nickel downstreaming ecosystem. ‘Many participants arrived with various perspectives and expectations regarding the Indonesian nickel industry. However, after seeing the operational reality on the ground, the environmental investment being made, and the openness of various parties in dialogue, we saw an industrial ecosystem operating on a world-class scale and continually striving to improve its sustainability standards,’ said Ovan on Thursday (4/6/2026). The contribution of downstreaming to the national economy is also increasingly significant. The export value of nickel derivative products surged nearly tenfold, from US$3.3 billion in 2018 to approximately US$34 billion in 2024. With a contribution of around 13-15% to the world’s nickel supply, North Maluku is now one of the strategic centres in the global critical mineral supply chain. In the first quarter of 2026, the province’s economy grew by 19.64%, the highest in Indonesia. North Maluku Governor Sherly Tjoanda affirmed that downstreaming success must be followed by an increase in the role of local communities in the industrial value chain. To this end, the regional government is pushing for the strengthening of vocational education and skills development aligned with industry needs. ‘We are therefore strengthening community education and skills so that more North Maluku residents can take on larger roles in the industry. We are also encouraging the development of vocational education and polytechnics relevant to the industrial sector’s needs, so that in the future, more local people can fill strategic positions,’ said Sherly. According to her, industrial estate development must go hand in hand with improving people’s access to education, health services, infrastructure, and business opportunities. On the other hand, Indonesia’s increasing position in the global critical mineral supply chain means that environmental, social, and governance (ESG) aspects are receiving more attention from the international market. NiPERA Executive Director Chris Schlekat assessed that the competitiveness of the Indonesian nickel industry in the future will be largely determined by companies’ ability to demonstrate objectively verifiable sustainability practices. ‘Going forward, access to global markets will be increasingly determined by a producer’s ability to demonstrate verifiable environmental, social, and governance practices. For this reason, it is important for the industry to refer to credible, relevant, and science-based standards so that claims regarding these practices can be measured objectively,’ said Chris.