Indonesia pushes nickel downstreaming amid record investment

Indonesia's national investment reached Rp1,010.6 trillion in the first half of 2026, representing a 7.2% year-on-year increase and creating over 1.4 million jobs. The government is heavily prioritizing downstreaming, industrialization, and energy independence to drive economic transformation under the administration of President Prabowo Subianto.

To address a global nickel oversupply of approximately 2.5 million tons, Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia is considering a moratorium on the construction of new intermediate nickel smelters. The policy aims to shift focus from producing semi-finished goods to achieving 100% domestic value-added manufacturing. The government is currently reviewing regulations for products that only reach 50% to 60% processing levels to ensure the domestic industry moves toward final-stage manufacturing and reduces the export of semi-finished materials.