With Indonesia producing over 60% of the world’s nickel, the country stands at the epicenter of the global clean energy transition. But its own nickel industry has long relied on coal-heavy energy sources and carbon-intensive smelting practices.
In response, the Indonesian government—through the Ministry of National Development Planning (Bappenas)—has partnered with WRI Indonesia to launch the Indonesian Nickel Industry Decarbonization Roadmap (Peta Jalan Dekarbonisasi Industri Nikel Indonesia). This strategic initiative, developed with over 30 mining and smelter companies from Sulawesi and North Maluku, aims to reduce emissions while boosting competitiveness and regional equity in the sector.
Big Goals by 2045: 81% Carbon Emissions Cut
This roadmap aligns with Indonesia’s long-term development vision (RPJPN 2025–2045) and its national target to achieve Net Zero Emissions by 2060. Specifically, it aims to slash carbon emissions from the nickel industry by 81% by 2045. The strategy is built on four pillars:
- Energy and material efficiency—by utilizing waste heat recovery technology;
- Fuel switching—from coal to biofuel and liquefied natural gas (LNG);
- Material substitution—including limiting nickel content in ore inputs and using biomass-based reducing agents;
- Low-carbon electricity—by tapping renewable energy like solar, hydro, biomass, wind, and green hydrogen.
The last pillar is prioritized, as the largest emissions come from captive coal power plants fueling the industry.
Why It Matters: The Urgent Carbon Reality of Nickel Smelting
The urgency is clear. Nickel production in Indonesia contributed to 22% of national emissions from the energy and industrial processes sectors in 2023. According to WRI Indonesia, without decarbonization, emissions from the nickel industry could soar by 86% by 2045 due to rising demand and processing activities. Currently, producing a ton of refined nickel emits 7–10 times more greenhouse gases than global averages, largely because of fossil-powered electricity and low-efficiency technology.
Building a Greener Ecosystem: Policy, Energy, and Innovation
To support this transition, the roadmap includes bold policy recommendations:
- Develop 47.3 GW of renewable energy plants and transmission lines to industrial hubs;
- Add 5.1 GW of green hydrogen facilities in areas like North Maluku, where solar or hydro resources are limited;
- Improve LNG and biomass infrastructure for smelters;
- Introduce a pricing scheme that levels the cost of low-carbon energy with coal;
- Create a national green nickel standard to regulate emissions and clean energy use in the production process.
These steps not only support sustainability, but also aim to improve Indonesia’s positioning in global markets that increasingly value environmentally responsible supply chains.
Voices of Leadership: Competitiveness Meets Responsibility
Leonardo A.A.T Sambodo of Bappenas emphasized that this roadmap “is not just about environmental protection—it’s about making our nickel industry globally competitive.” Egi Suarga of WRI Indonesia added that this is a “first step in reforming the governance of nickel, leveraging Indonesia’s position as the world’s largest producer to lead in responsible and low-carbon mining.”
