Indonesia's policy of processing raw nickel into high-value products has significantly boosted its economy, with a tenfold increase in export value since 2017. Minister of Investment and Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, highlighted that nickel export revenues soared from USD 3.3 billion in 2017 to USD 33.5 billion in 2023, driven by the downstreaming initiative. Bahlil emphasized the substantial economic benefits of processing nickel ore into higher-value products. For instance, nickel sulfate, derived from nickel ore, commands an 11.4-fold higher market value, nickel cathode a 37.5-fold increase, and battery cells an impressive 67.7-fold rise. This strategy has also positioned Indonesia as one of the world's largest producers of stainless steel and a key player in the renewable energy sector, particularly in electric vehicle (EV) battery production. He noted that Indonesia holds 25% of the world's nickel reserves, which are essential for EV batteries, along with manganese, cobalt, and lithium. This resource wealth underpins Indonesia's strategic role in the global EV market.

Investment in Indonesia's downstream sectors during the first half of 2024 reached IDR 181.4 trillion, marking a 21.9% year-on-year increase. The breakdown includes IDR 80.9 trillion in nickel, IDR 28 trillion in copper, IDR 5.1 trillion in bauxite, and IDR 0.1 trillion in tin. Additionally, investments in forestry amounted to IDR 24.5 trillion, agriculture IDR 23.6 trillion, petrochemicals IDR 13.2 trillion, and EV batteries IDR 6 trillion. These investments underscore Indonesia's commitment to enhancing its industrial base and creating greater economic value from its natural resources. The success of the nickel downstreaming policy exemplifies how strategic resource management can transform economic outcomes, positioning Indonesia as a significant player in the global market.

Source: https://www.rri.co.id/nasional/865098/hilirisasi-nikel-hasilkan-nilai-tambah-perekonomian-indonesia