[REVISION HISTORY]

Indonesia restructuring for downstreaming and energy

Updated 8 times since CLSTR started tracking revisions of this situation.

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2026-10-21 04:05 UTC → 2026-10-21 09:14 UTC · added ~~removed~~

President Prabowo Subianto has launched 11 new projects at the Indonesia Weda Bay Industrial Park (IWIP) to advance the nation’s nickel downstreaming policy. Of these, four projects valued at Rp60 trillion are already operational and exporting, while seven others have commenced groundbreaking with an investment value of US$6.8 billion. This policy, which mandates domestic processing of raw minerals, has significantly impacted the economy. According to World Bank data, the full ban on raw nickel exports implemented in 2020 contributed to Indonesia’s economic growth of 32.1% through 2024. Indonesia currently accounts for 58% of global nickel production. Despite this growth, the sector maintains a heavy reliance on China, which has invested US$65 billion in Indonesia’s nickel industry over the last decade and controls approximately 75% of the country’s refining capacity. In 2024, nickel exports to China represented 82% of Indonesia’s total nickel exports. Economist Faisal Basri noted that the high level of Chinese ownership and market dominance may result in ‘only 10% of profits flowing to domestic companies’. By During the first ~~half~~ two years of the Prabowo administration, spanning Q4 2024 through Q3 2026, national investment ~~rose 7.2% year-on-year to Rp1,010.6~~ realization reached Rp3,923.2 trillion, creating ~~over 1.4 million~~ 5,485,944 jobs. ~~To combat a global nickel oversupply of approximately 2.5 million tons, Coordinating Minister Bahlil Lahadalia is considering~~ This total comprised Rp1,998.7 trillion (50.9%) in domestic investment and Rp1,924.5 trillion (49.1%) in foreign investment. Investment in Special Economic Zones (KEK) reached a ~~moratorium on new intermediate nickel smelters.~~ cumulative Rp382.1 trillion. Looking toward the end of 2026, the National Economic Council (DEN) projects that downstream product exports—including nickel, aluminum, and lithium battery components—will reach US$50 billion, a 45% increase from US$34.5 billion in 2024. ~~DEN Executive Secretary Septian Hario Seto noted aluminum~~ Aluminum downstream exports ~~alone~~ are ~~expected~~ specifically projected to reach approximately US$7.2 billion ~~this year. Despite lacking domestic lithium resources, Indonesia has established refineries and produces components such as anodes and cathodes.~~ in 2026.

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