The Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves) claims that Indonesia's nickel exports have surged tenfold after successfully producing and exporting raw materials for electric vehicle batteries, namely nickel matte and mixed hydroxide precipitate (MHP). Deputy for Maritime Resources Coordination at Kemenko Marves, stated that Indonesia's robust economic growth is a result of economic transformation, including the nickel downstreaming program. For years, Indonesia has been exporting nickel ore. But now, not only iron and steel but also lithium battery materials such as nickel matte and MHP are being exported. Through the export of one of these nickel downstreaming products, Firman stated that Indonesia's exports have increased by more than tenfold in less than ten years. As an illustration, in 2014, the export value of nickel derivatives was only USD 3 billion, but last year, it reached USD 34 billion. These figures are projected to continue growing if Indonesia can produce lithium batteries within 1-2 years.
According to calculations by the Ministry of Industry, the added value of nickel ore to downstream products increases significantly if processed domestically or downstream from raw materials. If raw nickel ore is valued at USD 30/ton, when it becomes Nickel Pig Iron (NPI), its price will rise by 3.3 times to reach USD 90/ton. Moreover, if it becomes Ferronickel, it will increase by 6.76 times or equivalent to USD 203/ton. As downstreaming continues, producing Nickel Matte will further increase its added value by 43.9 times or USD 3,117/ton. Furthermore, Indonesia already has smelters that use MHP as a raw material for batteries, adding value approximately 120.94 times (USD 3,628/ton). The downstreaming program also strengthens Indonesia's economic structure from the western to the eastern parts of the country. Foreign investments, which were initially dominant in Java, have shifted to industries outside of Java. Through downstreaming, the contribution of the manufacturing sector to national revenue has significantly increased. According to data from the Ministry of Industry as of August 2023, there are 34 operational smelters and 17 smelters under construction. The investments made in Indonesia amount to USD 11 billion or around IDR 165 trillion for Pyrometallurgy smelters and nearly USD 2.8 billion or close to IDR 40 trillion for three Hydrometallurgy smelters that will produce MHP (Mixed Hydro Precipitate) as a battery raw material.
