Indonesia studies moratorium on smelters making intermediate products
The government wants more nickel processing to reach finished products, while seeking to address a global supply surplus of about 2.5 million tonnes.
Indonesia is examining a moratorium on smelters that produce only intermediate materials, Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said. The proposed restriction aims to encourage finished-product manufacturing within the country and address excess nickel supply.
Bahlil said the government wanted the full value added from processing to remain in Indonesia. The policy review is intended to help tackle a global nickel surplus of about 2.5 million tonnes, as well as steer industrial development towards final products.
Shanghai Metals Market projects that global nickel demand will increase by 21.39 per cent, reaching 4,512 Kt Ni in 2031 from 3,717 Kt Ni in 2026. It identifies batteries and stainless steel as the main sources of that growth.
Imaduddin Abdullah, director of the INDEF Green Transition Initiative, said Indonesia should use rising demand to expand beyond intermediate processing. Producing more complex goods would strengthen connections between domestic industries and bring more local suppliers into production, he said. Indonesian Mining Association chairman Rachmat Makkasau also called for integrated production capacity across the supply chain.
Among the projects under development, Indonesia Battery Corporation is working with the CATL-Brunp-Lygend consortium through PT Contemporary Amperex Technology Indonesia Battery on a battery factory in Karawang. Its initial capacity is 6.9 GWh, with an expansion target of 15 GWh.
