Indonesia’s nickel downstreaming policy has significantly strengthened the national economy, particularly by enhancing the value of its nickel exports. This strategy not only improves the production value chain but also shields nickel ore from price volatility. Prior to downstreaming, when raw nickel exports were allowed, Indonesia's export revenue from nickel reached only USD 3.3 billion in 2017-2018. However, after downstream processing was implemented, nickel export value soared to USD 35.6 billion (IDR 510 trillion) in 2022, marking a 6.6-fold increase from 2013’s USD 5.4 billion. President Joko Widodo (2019-2024) emphasized Indonesia’s success in processing nickel from raw material to semi-finished products used in stainless steel and batteries, a transformation driven by the government's downstreaming policies.
In 2023, Indonesia supplied 59% of global nickel demand, with projections suggesting a 70% share this year. This dominant role positions Indonesia to influence global nickel prices, supported by the nation's extensive resources—18.5 billion tons of nickel ore and 184.6 million tons of nickel metal. Indonesia's nickel smelters, located in key regions such as Central Sulawesi, Southeast Sulawesi, and North Maluku, play a vital role in sustainable development. PT Gunbuster Nickel Industry (PT GNI) in North Morowali, Central Sulawesi, is a major contributor, producing Nickel Pig Iron (NPI) with a nickel content of 10-12% and a production capacity of up to 1.9 million tons per year. PT GNI not only enhances nickel’s economic value but also generates significant local economic benefits, including job creation, the emergence of new businesses, and solidifying Indonesia’s position as a top nickel exporter.
