Indonesia has transitioned from raw nickel ore exports to a domestic processing and industrialisation model driven by export restrictions on unprocessed ore and the development of integrated smelting and refining capacity. The country now operates a large-scale nickel system covering ferronickel, nickel pig iron (NPI), nickel matte and mixed hydroxide precipitate (MHP), supported by mining, smelting and battery-material supply chains.
Key listed exposure includes PT Aneka Tambang (Antam), PT Merdeka Battery Materials (MBMA), PT Trimegah Bangun Persada (Harita Nickel), and PT Vale Indonesia (Vale Indonesia). These companies provide listed exposure to Indonesia’s nickel ore production and downstream processing into battery-related intermediates.
Foreign Investment and Industrial Park Development
Indonesia’s nickel expansion has been supported by large-scale investment from Chinese industrial groups including Tsingshan, Huayou Cobalt, GEM, CATL-linked Brunp, and Lygend, alongside participation from Korean, Japanese, US and European entities.
Industrial development is concentrated in zones such as Indonesia Morowali Industrial Park (IMIP) and processing hubs across Sulawesi and North Maluku.
A major framework involving Antam, Indonesia Battery Corporation, and a Chinese consortium led by Huayou Cobalt targets a $6bn battery ecosystem spanning mining, processing, cathode production and battery-cell manufacturing, with a targeted capacity of 20GWh. MBMA is also developing integrated mining and HPAL-based infrastructure in Sulawesi, including feedstock and processing systems linked to battery-material supply chains.
Emissions Intensity and Coal-Powered Processing Exposure
Data from the Institute for Energy Economics and Financial Analysis (IEEFA) reported that Indonesia’s four listed nickel companies produced 353,000 tonnes of contained nickel in 2023, alongside approximately 15.3mn tonnes of greenhouse gas emissions. Within the group, PT Vale Indonesia recorded the lowest emissions intensity at approximately 28.7 tonnes of CO₂ per tonne of nickel, supported by 365MW of hydropower capacity.
Other listed producers, relying primarily on coal-fired power, recorded estimated emissions intensities between 56.9 and 69.9 tonnes of CO₂ per tonne of nickel, depending on process route and operational configuration. IEEFA also projected that aggregate nickel production across the four companies could rise to approximately 1.05mn tonnes by 2028, with potential emissions reaching 38.5mn tonnes annually, equivalent to about 4.5% of Indonesia’s 2023 CO₂ emissions.
HPAL Expansion and Battery-Material Processing Systems
High-pressure acid leach (HPAL) technology is central to Indonesia’s battery-material strategy, converting laterite ores into MHP for downstream refining into nickel sulphate and related battery inputs.
Companies including PT Merdeka Battery Materials and PT Trimegah Bangun Persada are expanding HPAL capacity across integrated supply chains.
MBMA’s ESG New Energy Material HPAL facility produced 25,994 tonnes of nickel in MHP in 2025, while its Sulawesi Nickel Cobalt HPAL facility is designed for 90,000 tonnes per year of nickel in MHP, with initial commissioning targeted for mid-2026. The HPAL model requires significant sulphuric acid input, high-pressure processing systems, and complex residue and tailings management across tropical operating environments in Sulawesi and North Maluku.
Harita Nickel Integrated Production and Financial Performance
Harita Nickel’s Obi Island operations integrate nickel mining, pyrometallurgy and HPAL processing into a single production chain producing MHP and nickel sulphate. The company reported 2025 revenue of approximately Rp29.63tn (about $1.82bn) and Q1 2026 revenue of around Rp6.81tn (about $418mn). Its integrated model spans ore extraction through to battery-material intermediates, reflecting the shift toward vertically integrated nickel production systems.
PT Aneka Tambang reported nickel ore production of 16.11mn wet metric tonnes in 2025, an increase of 62% year-on-year. The company is participating in a broader battery ecosystem development involving Indonesian state-linked entities and Chinese partners, targeting integrated supply chains from mining through to cathode production and battery-cell manufacturing.
Vale Indonesia Investment Phase and Production Profile
PT Vale Indonesia produced 72,027 tonnes of nickel in matte in 2025, slightly higher than 2024 levels. The company reported $990.2mn in revenue and $76.1mn in net profit, while preparing a $1.0bn–$1.2bn financing programme for 2026–2027 to support mine and smelter expansion. Key projects include Bahodopi and Pomalaa, alongside HPAL-related partnerships involving Ford, Huayou and GEM-linked supply chains. Vale’s operations are supported by 365MW of hydropower capacity at Sorowako, contributing to its lower emissions intensity profile relative to coal-powered peers.
MBMA Integrated Feedstock, Acid and Processing Chain
MBMA’s operations integrate mining from the SCM mine, feed preparation systems, slurry transport infrastructure, HPAL processing facilities, and downstream nickel matte and nickel pig iron production.
The company also operates acid production systems linked to its IMIP-based infrastructure, processing pyrite ore from the Wetar Copper Mine into sulphuric acid, iron ore pellets, gypsum, lead-zinc hydroxide, copper cathode and precious-metal doré. This integrated structure links feedstock, reagents and by-products within a single industrial system supporting HPAL expansion.
Indonesia is implementing a 15% free-float requirement for listed companies, following concerns raised by MSCI regarding transparency and market accessibility. The reform is expected to affect approximately 70–75% of listed companies within the first year, with staggered compliance periods of one to three years depending on readiness. The initiative is aimed at improving liquidity, transparency and index eligibility for Indonesian equities, including nickel producers seeking global institutional investment.
ESG, Governance and Market Structure Pressures
Indonesia’s nickel sector faces increasing scrutiny from international investors regarding emissions intensity, coal-based power use, tailings management, water systems and governance transparency.
Chinese industrial participation remains central to Indonesia’s processing expansion, with companies including Tsingshan, Huayou Cobalt, GEM, Brunp and Lygend playing key roles in financing and technology deployment.
At the same time, Western buyers and ESG-focused investors are placing greater emphasis on verified emissions data, supply-chain traceability and decarbonisation pathways across nickel supply chains used in stainless steel and battery manufacturing.
Battery-Cell Ambitions and Downstream Integration
Indonesia’s planned battery ecosystem includes development of 20GWh of battery-cell capacity, linked to mining, processing, cathode production and industrial partnerships. The model requires integration of nickel with other inputs including lithium, manganese, cobalt, graphite, separators and electrolyte systems, alongside advanced manufacturing capabilities and customer qualification frameworks. This expansion represents a move beyond intermediate nickel products into full battery supply-chain participation, with increasing technical and capital intensity across the value chain.
