Deputy Minister of Investment/Deputy Head of Investment Coordinating Board (BKPM), Todotua Pasaribu, says the Indonesian nickel industry continues to show significant growth, with 54 smelters are in operation − either using High Pressure Acid Leach (HPAL) or Rotary Klin Electric Furnace (RKEF) technology − and 60 others  are in the process of obtaining permits for construction.

"We continue to ensure that this industry remains competitive. Especially in the context of downstreaming which is the main focus of our ministry," Todotua Pasaribu said while addressing the 8th anniversary of the Indonesian Nickel Miners Association (APNI) in Jakarta, on Thursday, March 6, 2025. 

The government is also trying to ensure that there is support for national mining business actors in the nickel industry ecosystem. Todotua admitted that this sector is a space for discussion and learning for him, especially because even though it is related to minerals, nickel industry operations have their own characteristics.

He highlighted that the Ministry of Investment is often considered resistive by mining business actors, especially regarding the revocation and restoration of mining business permits (IUP). Nevertheless, the government remains committed to encouraging downstreaming and creating greater added value for Indonesia's natural resources.

"This government has a big commitment to developing the downstream industry. We want to ensure that the resources we have can provide better added value," he said.

Nickel industry has become a success story of downstreaming projects in Indonesia. Therefore, the government continues to strive to encourage the entire downstreaming ecosystem in this industry to be fully realized domestically in the next few years.

"Hopefully in the next few years, the entire nickel industry ecosystem can be fully fulfilled in our own country," he cited.

The Ministry of Energy and Mineral Resources (ESDM) previously discussed a moratorium on new RKEF smelter investment. Based on ESDM ministry data, there are a total of 190 nickel smelter projects in Indonesia, consisting of 54 smelters that are already operating, 120 in the construction stage, and 16 in the planning stage.

Of these, only 8 or 9 smelters use hydrometallurgy or High Pressure Acid Leach (HPAL)-based technology to process limonite into battery raw materials, while the majority of other smelters are still based on RKEF.