Mining sector in Indonesia, especially Indonesian nickel, remains highly sought after worldwide. Indonesia’s nickel industry has solidified its position as a dominant force in the global market, with its share reaching up to 65% in 2023-2024. This remarkable influence underscores the country’s growing role in the international mining sector, particularly in supplying the world’s demand for nickel, a crucial component in electric vehicle batteries and various industrial applications.
The Indonesian Nickel Miners Association (APNI) highlighted how the nation’s production levels have surged, cementing its place as a key market driver.
“In reality, Indonesia’s nickel has become a key player globally. In 2023 and 2024, we held a market share of over 60%, ranging from 63% to 65%, particularly for Indonesian-produced nickel,” said APNI Secretary-General Meidy Katrin Lengkey, as quoted by CNBC Indonesia’s Mining Zone program on Thursday (30/1/2025).
A significant factor behind this dominance is the rise in processed nickel output from smelters across the country. According to Meidy, in 2024, refined nickel production—particularly Mixed Hydroxide Precipitate (MHP) and nickel matte—grew by 30% compared to 2023. This surge in output has strengthened Indonesia’s foothold in the global supply chain.
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“If we look back at 2023, the significant rise in production came from MHP nickel and nickel matte. From 2023 to 2024, there was an increase of up to 30% in production capacity,” Meidy explained.
The expansion in refined nickel production aligns with a surge in raw nickel ore extraction. In 2024 alone, Indonesia’s nickel ore output nearly touched 300 million tons, reaching 298.49 million tons. These soaring production levels have contributed to an oversupply in the market.
“In 2024, it was close to 300 million tons. As of today, the recorded figure stands at 298,489,000 tons—almost 300 million,” she added.
While Indonesia’s growing nickel exports have bolstered its presence in the global market, they have also put pressure on nickel prices. The abundance of supply, driven by high smelter output, has contributed to declining prices worldwide.
For instance, in early January 2025, the London Metal Exchange (LME) recorded the three-month nickel contract price at US$ 15,610 per ton on Friday (10/1/2025). This figure marked one of the lowest levels since 2021, reflecting the effects of Indonesia’s nickel boom on global pricing trends.
As Indonesia continues to dominate the nickel trade, its influence on market dynamics remains undeniable. However, the challenge now lies in balancing high production levels with maintaining stable prices, ensuring that the country’s mining sector remains both competitive and sustainable in the long run.
