A Mining–Energy–Industry Feedback Loop in Indonesia’s Nickel Sector: Structure, Benefits, and Enabling Conditions
Download PDFA policy concept note by Martin Dietrich Brauch, Aliyya Galuh Laksmiandari, and Jinhyun Aron Park
Indonesia is the world’s largest producer of nickel ore and intermediates, and its downstreaming agenda (hilirisasi) has been powered largely by captive coal: dedicated generation at mines and smelters reached 11.2 gigawatts (GW) in 2023, with roughly 20 GW more projected by 2032, concentrated in Sulawesi and North Maluku.
This policy concept note argues that the concentrated, round-the-clock demand of nickel mines and industrial parks is the strongest available basis for bankable renewable energy. Rather than a coal phaseout, it proposes a renewables phase-in, so that renewables displace coal at the margin of new capacity. It identifies the coordination, data, and regulatory constraints in the way, outlines the economic, environmental, and social co-benefits, and sets out recommendations for Indonesian and international stakeholders.
