ASIATODAY.ID, PALU — Five of Indonesia’s largest nickel-producing provinces have officially formed the Nickel Producers Parliamentary Forum, a new regional alliance designed to strengthen political coordination, regulatory oversight, and bargaining power in the country’s rapidly expanding nickel industry.
The forum was inaugurated at the Central Sulawesi Provincial Parliament building on Sunday, December 7, 2025 with the attendance of Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot.
The alliance brings together the provincial parliaments of Central Sulawesi, Southeast Sulawesi, South Sulawesi, North Maluku, and Southwest Papua—regions that collectively host the largest nickel reserves, mining concessions, and smelter clusters in Indonesia.
Deputy Minister Yuliot expressed strong support for the establishment of the forum.
He emphasized that a coordinated parliamentary platform would enhance policy input, regulatory harmonization, and on-the-ground oversight across Indonesia’s nickel value chain.
“Nickel is a finite and strategic natural resource. It must be managed responsibly to ensure the greatest possible benefits for the people, in accordance with Article 33 of the Constitution,” Yuliot said.
He noted that the forum will strengthen the role of local governments as Indonesia accelerates its national downstreaming agenda, which aims to maximize added value and reduce dependence on raw mineral exports.
365 Mining Permits, 79 Smelters: The Scale of Indonesia’s Nickel Sector
Yuliot revealed updated national data showing that Indonesia currently hosts 365 nickel mining permits (IUPs) across six provinces. Meanwhile, the country has 79 operational smelters, 74 under construction, and 17 in the planning and permitting phase.
He reiterated that the downstreaming mandate—enshrined in Law No. 2/2025—requires all mineral commodities to be processed domestically. The policy is a cornerstone of Indonesia’s long-term vision toward Golden Indonesia 2045.
“Since the export ban on nickel ore in 2020, Indonesia’s nickel exports have grown more than tenfold—from USD 3.3 billion in 2017 to USD 33.9 billion in 2024,” he stated.
Government projections for 2040 estimate: USD 618 billion in cumulative investments, 3 million new jobs, and substantial contributions to GDP and export value.
Environmental Safeguards and Good Mining Practice
Despite the rapid growth of nickel downstreaming, Yuliot underscored that every operator must adhere to good mining practice, especially regarding environmental rehabilitation, post-mining land recovery, and carbon emissions management.
Regions Must Have a Stronger Voice
Chairman of the Central Sulawesi Parliament, Mohammad Arus Abdul Karim, affirmed that the new alliance will serve as a collective platform for nickel-producing regions to articulate their interests more effectively at the national level.
“This forum unifies the voices of nickel-producing provinces so that local interests are heard and reflected in national policy,” he said.
He stressed that while the regions host major nickel industrial zones, they often face infrastructure gaps, environmental pressure, and uneven economic benefits—issues the forum aims to address jointly.
China’s Expanding Grip on Indonesia’s Nickel Industry
Indonesia’s move to consolidate the political voice of its nickel-producing regions emerges at a time when China maintains overwhelming influence in the sector. Approximately 75% of Indonesia’s nickel refining capacity is controlled by Chinese companies operating through the Belt and Road Initiative (BRI).
Industrial hubs such as IMIP in Central Sulawesi, IWIP in North Maluku, and VDNI in Southeast Sulawesi symbolize China’s deep integration into Indonesia’s nickel supply chain—an issue that has drawn global attention amid an intensifying U.S.–China rivalry over critical minerals and electric vehicle (EV) batteries.
The formation of the parliamentary alliance signals Indonesia’s growing interest in strengthening governance, environmental standards, and national control amid this geopolitical competition.
Indonesia’s Strategic Crossroads: National Control vs Global Rivalry
With the world racing to secure critical minerals, Indonesia faces a pivotal moment. The strengthening of institutional coordination through the Nickel Producers Parliamentary Forum may help Indonesia: increase its bargaining power, secure greater local benefits, tighten environmental enforcement, and balance external geopolitical pressures.
As Indonesia positions itself as a central player in the global EV supply chain, the voices of its nickel-producing provinces will play a decisive role in shaping the future of the nation’s mineral strategy. (AT Network)
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