Indonesia’s Nickel Reserves to Support Long-Term Processing Industry Growth
According to Mohammad Faizal, director for downstream strategic investment at Indonesia's Investment Ministry, the country's nickel reserves are more than adequate to sustain its processing industries for many decades. Speaking at an industry conference in Jakarta organized by consultancy Mysteel, Faizal provided insights into the longevity of Indonesia's nickel resources—high-grade reserves are estimated to last until 2035 and low-grade reserves until at least 2069.
Indonesia, which banned nickel ore exports in 2020 to boost domestic processing for nickel pig iron (NPI) and electric vehicle (EV) battery materials, sees continued potential for expansion in these sectors. Faizal highlighted the capabilities of Indonesia’s reserves to significantly bolster its position in the global market, aiming for the country to become one of the top five EV battery producers by 2040 and a leading stainless steel manufacturer.
Despite the global nickel market experiencing a 45% price drop last year due to oversupply—impacting producers worldwide, including in Australia—Faizal suggested that smelters could still be constructed to produce diverse product types, supporting Indonesia's strategic move towards greater value addition.
The proposal by a senior campaign official of president-elect Prabowo Subianto for a moratorium on new smelters is still under consideration, reflecting ongoing discussions about managing the nation's abundant nickel resources amidst fluctuating global demand.
