Indonesia is increasingly solidifying its position as one of the world’s leading suppliers of nickel and bauxite. According to reports from the United States Geological Survey (USGS) and the Geological Agency of the Ministry of Energy and Mineral Resources (ESDM), Indonesia currently ranks second in the world for nickel reserves and fourth for bauxite reserves. These rankings emphasize the country's strategic importance in the global mineral market, particularly as demand for nickel continues to rise due to its key role in electric vehicle batteries and renewable energy technologies. With its vast mineral reserves, Indonesia plays a pivotal role in the global supply chain, positioning itself as a major player in both the nickel and bauxite industries.
In response to its growing importance, Indonesia has implemented a policy banning the export of raw minerals, such as nickel and bauxite, to promote downstream processing within the country. This policy encourages the development of domestic industries that can process raw materials into higher-value products, which can then be exported at premium prices. The government's focus on industrial downstreaming is expected to boost the national economy, create jobs, and attract investment in infrastructure and technology. As part of this initiative, Indonesia has made significant investments in smelting facilities. According to the Coordinating Ministry for Maritime Affairs and Investment (Marves), there are currently 147 smelters operating in the country, with more planned in the coming years. Additionally, the Geological Agency is prioritizing the sustainable management of mineral resources by exploring new deposits to ensure long-term stability in mineral supply. These efforts aim to strengthen Indonesia’s role in the global mineral market while fostering sustainable economic growth and reducing the country’s reliance on raw material exports.
