Accelerating Downstream Processing, Government Accelerates Construction of 170 Smelters to Strengthen National Industry
JAKARTA – The government continues to accelerate the mineral downstreaming agenda as a strategic step to strengthen the national industrial structure. The main focus is on nickel, a commodity that plays a crucial role in the global electric vehicle supply chain.
Data from the Ministry of Energy and Mineral Resources (ESDM) as of December 2025 shows that 79 nickel smelters are currently operating in Indonesia. With 74 smelters under construction and 17 units in the planning and licensing process, the total number of nickel processing facilities is projected to reach 170.
Deputy Minister of Energy and Mineral Resources Yuliot stated that the acceleration of smelter development aims to increase domestic added value while expanding employment opportunities. He explained that there are currently 365 nickel Mining Business Permits (IUP) spread across six provinces: Central Sulawesi, Southeast Sulawesi, South Sulawesi, Maluku, North Maluku, and Southwest Papua.
“Accelerating downstreaming will strengthen Indonesia’s position in the global nickel industry chain,” said Yuliot.
Regarding this, five provincial councils (DPRD) in eastern Indonesia officially formed the Nickel Producing DPRD Forum. The forum’s members are the DPRDs of Central Sulawesi, Southeast Sulawesi, South Sulawesi, North Maluku, and West Papua.
The Speaker of the Central Sulawesi DPRD, H. Mohammad Arus Abdul Karim, emphasized that the forum was formed to advocate for the optimization of nickel Revenue Sharing Fund (DBH) receipts, which are considered disproportionate to producing regions.
“Although state revenue from the nickel sector reaches around IDR 570 trillion, Central Sulawesi only receives around IDR 200 billion in DBH per year,” said Arus.
Meanwhile, Central Sulawesi Governor Anwar Hafid expressed his commitment to immediately coordinating with investors to accelerate the recovery of the nickel industry in Morowali. He emphasized the importance of continuing the collaborative commitment outlined in the MoU between the company and the regional government.
“PT Wangsiang plays a strategic role in nickel downstreaming in Central Sulawesi. We hope production activities can resume soon,” said Anwar.
The government is optimistic that accelerating the construction of 170 smelters and strengthening the role of regions through a nickel-producing legislative forum will strengthen the foundation for national industrial transformation and maintain Indonesia’s position as a major player in the global nickel industry. (*/rls)
