Nickel Entrepreneurs Hope for More Downstream-Friendly Regulations

Chairman of the Indonesian Nickel Industry Forum, Arif Perdana Kusumah, is encouraging the government to create regulations that can attract investor interest in downstream projects in the country. “The industry also needs a policy that can drive this industry further downstream, because the added value will be much greater,” Arif said during a discussion session held by Tempo Inti Media Impresario titled ‘One-Door Export and the Future of the National Palm Oil and Mining Industry’ on Wednesday, 24 June 2026.

Arif stated that downstream processing in the nickel industry began in 2009 when the government revised the Mining Law. At that time, Arif explained, the government required entrepreneurs to process and refine minerals domestically, preventing direct export. Then, about five years later, during the era of President Joko Widodo, the government banned the export of raw materials.

Since then, Arif said, nickel processing and refining facilities in Indonesia have developed rapidly. Ultimately, by 2025, Arif noted that Indonesia had become the world’s largest nickel producer. He said that Indonesia currently holds 60 percent of the global nickel market share, with China as the world’s largest consumer country being the main market for Indonesian nickel.

Furthermore, Arif estimated that Indonesia has produced around 2.5 million tonnes of nickel, both for the stainless steel industry and energy transition products including electric vehicle batteries. However, almost 90 percent of total production is exported in raw form. “Although we have succeeded in becoming the largest producer in the world, what we produce are still only intermediate products,” he said.

He acknowledged that Indonesia should be producing more derivative products with added value. Therefore, Arif is urging the government to create regulations that can attract investment, especially from the private sector, in downstream processing. The goal is to ensure that in the future, raw material exports from Indonesia are not significant. “The large added value is actually downstream, with the construction of downstream industries up to finished goods, applicative goods,” he said.

Beyond providing added value, Arif believes downstream projects will create technology transfer. According to him, downstream industries such as battery manufacturing, stainless steel, precursors, and cathodes use highly sophisticated technology and require competent talent.