Nickel Downstreaming Opens the Way for Electrification in the Mining Sector

The government assesses that the global momentum surrounding environmental, social, and governance (ESG) issues presents a major opportunity to promote electrification in Indonesia’s mining sector. Pressure from investors and markets is seen as intensifying.

Solehan, Director of the Agricultural Machinery and Equipment Industry at the Ministry of Industry, stated that global trends are now shifting towards cleaner and more sustainable industrial operations.

This change is no longer merely an optional choice but a necessity that domestic industry players must address.

“Global technological developments are moving faster, and ESG has become the primary indicator for global investors. We see this as a momentum for transformation towards cleaner operations,” Solehan said at the EV Transition in Mining Industry Outlook 2026 event on Wednesday (29/4/2026).

Furthermore, Indonesia boasts significant natural resource advantages, particularly in nickel commodities. This serves as crucial capital for developing the electric vehicle battery supply chain.

Solehan believes this opportunity must be leveraged to strengthen Indonesia’s position in the global industry. Not only as a supplier of raw materials, but also as a producer of technology components.

Indonesia is currently beginning to develop nickel downstreaming to support the battery industry. This step is expected to accelerate the adoption of electric vehicles, including in the mining sector.

“Well, Indonesia now has a strong opportunity in developing the supply chain for those components, including batteries. Here, it’s nickel, so NMC—Nickel Manganese Cobalt—that we need to downstream,” Solehan remarked.

Further, he emphasised that electrification must be part of national industrialisation. In this way, its impact will not only be on the environment but also on economic growth.

The development of smelters and downstream nickel industries can create significant added value. This also opens opportunities for the production of electric-based heavy equipment components domestically. The government hopes the mining sector will play a leading role in implementing clean technology in heavy industries.

“This indeed becomes important capital so that electrification in the mining sector is not just about using technology, but also driving the growth of the domestic manufacturing industry itself,” Solehan added.