Indonesia has reinforced its strategic dominance in the global nickel market by consolidating control over processing capacity rather than raw material extraction, positioning itself as a critical player in supply chains for energy transition and advanced manufacturing. By 2025, Indonesia accounts for around 60–65% of global refined nickel production, supported by vast geological reserves, large-scale infrastructure development, and targeted industrial policies. Massive investment in smelters, integrated industrial parks, and energy infrastructure has transformed the country into the world’s primary nickel processing hub, enabling higher value creation and stronger resilience against global market volatility.

A pivotal driver of this transformation was the 2020 ban on unprocessed nickel ore exports, which successfully shifted Indonesia from a raw material exporter to a major exporter of refined nickel and downstream products. This policy accelerated foreign direct investment, strengthened employment, enhanced technology transfer, and improved governance across the sector. Through production quotas, downstream requirements, and environmental standards, Indonesia now exercises sophisticated supply management that influences global pricing and investment flows. While Chinese firms play a significant role through capital and technical expertise, Indonesia retains regulatory control and strategic leverage. Overall, Indonesia’s nickel strategy is widely viewed as a positive model of resource-based industrialization, supporting global energy transition needs while delivering long-term economic value, supply security, and sustainable development benefits.
Source
 https://discoveryalert.com.au/indonesia-nickel-global-supply-chain-2026/