Indonesian Political, Business & Finance News

Sulphur Imports from Saudi Arabia and Others Disrupted: Shift to Other Countries?

| Source: CNBC Translated from Indonesian | Trade
Sulphur Imports from Saudi Arabia and Others Disrupted: Shift to Other Countries?
Image: CNBC

Disruptions in sulphur supplies from the Middle East region are beginning to push nickel industry players in Indonesia to seek alternative sources. However, efforts to divert imports are deemed not straightforward and full of challenges.

Chairman of the Indonesian Nickel Industry Forum (FINI), Arif Perdana Kusumah, revealed that several business actors are currently exploring sulphur supplies from other countries outside the Middle East as a precautionary measure.

“Due to the supply disruptions and shortages that have occurred, some business actors are starting to seek other sources originating from countries outside the Middle East,” he told CNBC Indonesia on Thursday (23/4/2026).

Nevertheless, he assessed that this step cannot immediately replace the main supply. This is because alternative countries have more limited production capacity.

“This is not easy, because the distance can be further and the quantity is not as much as produced by Middle Eastern oil and natural gas producing countries. In addition, the current world sulphur price has experienced a very significant increase,” he said.

Therefore, some companies are also beginning to consider importing in the form of sulphuric acid as a substitute for sulphur. However, this option also faces obstacles, ranging from logistical complexity, special handling requirements, to an import permitting process that is still considered quite complicated.

“Government policy is needed to facilitate the granting of sulphuric acid import permits in emergency conditions like this,” he said.

As is known, the government is beginning to be wary of potential disruptions in the sulphur supply chain that could impact the nickel downstreaming programme. This was learned after the Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, met with President Prabowo Subianto at the State Palace.

In that meeting, Luhut conveyed several recent developments, including risks from prolonged global conflicts that could affect the energy and strategic commodities sectors.

Through a post on his personal Instagram account @luhut.pandjaitan, he stated that over the next three months, Indonesia’s economic growth and activity will remain relatively stable.

However, the government has prepared scenarios to anticipate various possibilities in facing a worsening global situation.

“Especially if this global conflict lasts longer than we anticipated. One thing we are monitoring is the surge in energy prices,” Luhut explained, quoted on Thursday (23/4/2026).

In addition, the government is also monitoring potential disruptions in the supply chain of other important commodities, particularly sulphur. Luhut assessed that this commodity plays a crucial role in the nickel downstreaming process and the development of electric vehicle batteries in Indonesia.

“In addition to energy, we are also monitoring disruptions in the supply chain of other strategic commodities; such as sulphur which is crucial for nickel downstreaming and electric vehicle batteries,” he said.

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