Indonesia and Philippines vie to capture more value from nickel

Indonesia has rapidly transformed its nickel sector from a raw‑ore exporter into the world’s largest producer and a key processing hub. By restricting ore exports and expanding domestic smelters, the country now supplies battery‑grade material and can influence global nickel prices, with production accounting for roughly 65 % of global supply.

The Philippines, another major Southeast Asian nickel producer, faces a strategic choice. While short‑term export revenues are high, policymakers warn that unchecked ore shipments could deplete reserves before a domestic processing industry is established. Analysts recommend a three‑pillar approach: production quotas to preserve ore, progressive export duties to encourage downstream investment, and careful smelter incentives that avoid excessive tax holidays. Both nations seek to move up the value chain and capture greater economic benefits from the metal that underpins electric‑vehicle batteries and other green technologies.