Indonesia’s Strategy in Optimizing Mineral Wealth: A Major Opportunity in the Nickel and Bauxite Industry

Jakarta, INTI - Indonesia has long been recognized for its abundant natural resources. In the mineral sector, Indonesia occupies a strategic position as a leading supplier of nickel and bauxite in the global market. Data from the United States Geological Survey (USGS) and the Geological Agency of the Ministry of Energy and Mineral Resources (ESDM) show that Indonesia holds the world’s second-largest nickel reserves and the fourth-largest bauxite reserves. With this position, Indonesia has vast potential to play a crucial role in the international mineral industry.

Indonesia’s Strategic Role in the Global Mineral Industry

In a webinar hosted by the Surabaya Institute of Technology, the Head of the Geological Agency of the Ministry of Energy and Mineral Resources, Muhammad Wafid, highlighted Indonesia’s importance in this sector. “As one of the largest holders of natural resources, Indonesia should hold a strategic position in the global mineral supply chain, both as a raw material provider and in meeting global demand for nickel and bauxite,” he said.

According to Wafid, the latest data shows that Indonesia’s nickel resources amount to 18.5 billion tons of ore, with nickel reserves totaling 5.3 billion tons of ore. For bauxite, Indonesia has a total resource of 7.4 billion tons of ore, with reserves of 2.7 billion tons of ore. This not only provides economic advantages but also underscores Indonesia’s critical role in the global mineral market.

Strategic Steps in Downstreaming and Smelter Development

In recent years, Indonesia has gradually imposed a raw material export ban, aiming to encourage domestic industry downstreaming, increase the added value of mineral products, and reduce reliance on raw material exports. The government has also made significant investments in building smelter facilities throughout Indonesia.

Data from the Coordinating Ministry for Maritime and Investment Affairs shows that there are currently 147 smelters operating across Indonesia, most of which use pyrometallurgical and hydrometallurgical processing methods. The presence of these smelters is expected to maximize state revenue and generate substantial employment for the local communities.

Enhancing People’s Welfare Through Downstreaming

President Prabowo Subianto has expressed the government’s commitment to continuously promote downstreaming in the mineral sector to improve public welfare. According to Prabowo, downstreaming is a crucial strategy for strengthening Indonesia’s economy. “The added value from our commodities should deliver real benefits to the national economy. We want all Indonesians to benefit from our natural wealth,” he said.

Conserving Reserves for the Future

As mineral extraction activities increase, the government, through the Geological Agency, is taking proactive steps to preserve mineral reserves for future use. The agency actively conducts surveys and explores new areas with potential mineral reserves.

“Over the past five years, we have observed a significant increase in mineral resources, both in inferred and measured resources,” Wafid noted.

Through these efforts, the government aims to maintain Indonesia’s mineral reserves to support the national economy in the long term.