ASIATODAY.ID, JAKARTA — Indonesia, the world’s largest holder of nickel reserves, has recorded a significant increase in nickel ore imports from the Philippines. This trend has emerged as domestic smelter capacity expands rapidly, outpacing the growth of upstream mining supply.
According to the Indonesian Nickel Industry Forum (FINI), import volumes continue to rise to meet the growing needs of the country’s smelting industry.
FINI Chairman Arif Perdana Kusumah emphasized that nickel downstreaming is a complex ecosystem requiring a strong balance between mining, smelting, markets, and government policy.
“The rapid growth of smelters must be matched with well-planned mining operations to ensure stable raw material supply,” Arif said in an official statement on Friday, November 21, 2025.
Large Reserves, But Even Larger Smelter Demand
FINI data shows Indonesia holds about 55 million tons of nickel metal reserves, or 45 percent of total global reserves. However, the surge in smelter capacity means domestic supply alone cannot meet rising demand.
In 2024, Indonesia imported approximately 10.4 million tons of nickel ore from the Philippines, and this figure is projected to rise to 15 million tons in 2025, valued at USD 9.9 billion or around IDR 163.5 trillion.
Imports are also needed to meet specific silica-to-magnesium (Si:Mg) ratios used in certain smelting processes.
Why the Philippines?
The Philippines holds around 4.8 million tons of nickel reserves, or about 4 percent of global reserves. Despite its smaller reserve base, it is a key supplier of low-grade nickel ore, which is crucial for many Indonesian smelters—especially those producing nickel pig iron (NPI) and other nickel class II products.
Indonesia’s smelter capacity has expanded dramatically, growing from 250,000 tons of nickel class II in 2017 to 1.8 million tons class II and 395,000 tons class I in 2024. This massive jump has created a structural supply gap that imports help fill.
Today, Indonesia controls more than 60 percent of the global nickel market, solidifying its role as a major player in stainless steel and battery material supply chains.
Balancing Upstream Supply and Downstream Expansion
Arif highlighted the need for stronger integration between mining and smelting operations.
“A well-planned upstream supply strategy is critical to support smelter demand as the industry keeps expanding,” he said.
He also noted the government’s ongoing efforts to support exploration, improve mining capacity, and strengthen technical compliance in the industry to ensure sustainable downstream industrial development.
Indonesia on Track to Become the World’s Biggest Nickel Producer
Indonesia is projected to become the world’s largest nickel producer within the next decade. Eramet Indonesia reported that the country already supplied 55 percent of total global nickel output in 2023.
Production from Weda Bay Nickel—one of the world’s largest nickel projects—is expected to reach 32 million tons in 2024.
Eramet Indonesia CEO Jérôme Baudelet expressed strong confidence in Indonesia’s future.
“We believe Indonesia will remain the global hub of nickel production over the next 10 years. Up to 70 percent of the world’s nickel supply will eventually come from Indonesia,” he stated.
Baudelet acknowledged the ongoing challenge of securing sufficient ore to match smelter expansion, noting that imports from the Philippines reflect the strong domestic demand created by rapid industrial growth.
“With abundant resources and a commitment to balanced supply management, Indonesia remains our top priority. We aim to contribute to Indonesia’s growth and to the global nickel industry,” he concluded. (AT Network)
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