"During the 2017-2018 period, the value of our nickel exports was pegged at US$3.3 billion. After we started pursuing downstreaming efforts, the value was boosted tenfold to US$33.5 billion in 2023," he remarked in Jakarta on Tuesday.
Lahadalia underscored that the sale value of nickel derivative products far exceeds that of nickel ore as a raw material. For instance, he said, the value of nickel sulphate is 11.4 times higher, while that of nickel cathodes and battery cells is 37.5 times and 67.7 times higher, respectively.
The minister then emphasized that the downstreaming of nickel had led Indonesia to emerge as one of the world's largest producers of stainless steel.
Furthermore, the downstreaming policy has opened an opportunity for the country to become a prominent player in the development of clean energy, especially in the electric vehicle (EV) battery industry.
"The raw materials of EV (battery) are manganese, cobalt, lithium, and nickel. Note that Indonesia stores 25 percent of the world's nickel reserves," he remarked.
According to data presented by the Ministry of Investment, investments in the mineral downstream sector were realized at Rp181.4 trillion (US$11.1 billion) in the first half of 2024, an increase of 21.9 percent year-on-year.
In detail, the figure was derived from Rp80.9 trillion (US$5 billion) in nickel investments, Rp28 trillion (US$1.7 billion) in copper, Rp24.5 trillion (US$1.5 billion) in forestry, Rp23.6 trillion (US$1.4 billion) in agriculture, and Rp13.2 trillion (US$809 million) in petrochemical.
Meanwhile, investments in EV batteries contributed Rp6 trillion (US$367 million); bauxite, Rp5.1 trillion (US$312 million); and tin, Rp0.1 trillion (US$6 million).
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Translator: Ahmad M, Tegar Nurfitra
Editor: Azis Kurmala
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