Jakarta, 12 Juni 2025 — The Ministry of National Development Planning (Bappenas) and WRI Indonesia have officially launched the National Nickel Industry Decarbonization Roadmap. Initiated in early 2024, this collaboration has engaged more than 30 nickel mining and smelting companies from across Sulawesi and North Maluku, as well as national ministries and agencies, local governments, and academic institutions.

As the world’s leading producer, supplying 60% of global nickel, Indonesia must develop a sustainable and low-carbon domestic processing strategy that navigates both the opportunities and challenges of equitable downstream development. Accordingly, the roadmap provides strategic direction for building a competitive, low-carbon nickel industry aligned with the government’s ambition to generate economic value added and achieve its 8% economic growth target.

The roadmap sets an ambitious target of reducing carbon emissions from the nickel industry by 81% by 2045, in line with Law No. 59/2024 on the 2025–2045 National Long-Term Development Plan (RPJPN) and the country’s commitment to achieving Net Zero Emissions (NZE) by 2060 or earlier. To operationalize the target, the roadmap outlines four decarbonization strategies for the industry: (1) Energy and material efficiency through waste heat recovery technologies; (2) Fuel switching, by replacing thermal coal in smelters with LNG and diesel in equipment with biodiesel; (3) Material substitution, such as limiting nickel grades in ore feed and using biomass-based reductants; and (4) Low-carbon electricity use, by gradually phasing down coal and replacing it with renewable energy sources.

Among these, the shift to low-carbon electricity is prioritized, as captive coal-fired power plants remain the largest source of emissions in the nickel sector, accounting for 63% of the total. Given that many nickel-producing regions are surrounded by abundant renewable energy potential, the roadmap recommends optimizing a mix of solar, wind, hydro, and green hydrogen to reduce the industry’s reliance on coal significantly.

Low-carbon development requires a fundamental shift in planning processes to integrate emission reduction targets. As of 2023, Indonesia’s nickel industry, though relatively new, has already become the country’s largest industrial carbon emitter, accounting for approximately 22% of national emissions from the energy and Industrial Processes and Product Use (IPPU) sectors. The heavy reliance on fossil-fueled power plants and carbon-intensive processing technologies results in emission levels that are 7 to 10 times higher per ton of refined nickel compared to global benchmarks. Without intervention, emissions from the sector are projected to rise by 86% between 2023 and 2045, driven by increased production and declining ore quality. This highlights the urgent need to adopt sustainable practices across the entire nickel production and supply chain.

Leonardo A.A.T Sambodo, Deputy for Food, Natural Resources, and Environment at Bappenas, stated, “We hope that the implementation of decarbonization strategies in the nickel industry will not only mitigate its environmental impact but also enhance the competitiveness and acceptance of Indonesian nickel in global markets—ultimately making the sector a driver of low-carbon economic growth.”

Egi Suarga, Senior Manager for Climate at WRI Indonesia, added, “Decarbonizing the nickel industry is a crucial first step in transforming its governance and unlocking Indonesia’s potential as the world’s largest nickel producer. With this, Indonesia can emerge as a global leader in producing low-carbon and responsibly sourced nickel.”

The roadmap also outlines policy recommendations to foster an enabling ecosystem for implementing these strategies, recognizing that the transition to a low-carbon industry still faces significant challenges. These include limited energy infrastructure, the high cost of clean energy and materials, and ongoing policy uncertainty. To support the decarbonization of the power supply, the roadmap proposes the development of 47.3 GW of renewable energy generation—comprising hydropower, wind, and solar—along with the expansion of transmission infrastructure to reach nickel smelters by 2045. In North Maluku Province, where renewable energy potential is more constrained, the roadmap recommends an additional 5.1 GW of power generation based on green hydrogen.

Furthermore, developing infrastructure for LNG and biomass supply chains is essential to support the decarbonization of smelter processing. To overcome cost-related barriers, the roadmap advocates for the implementation of preferential pricing policies that make low-carbon energy more competitive with coal. Lastly, to strengthen the regulatory framework, it is necessary to establish an Indonesian Green Nickel Standard, which would set clear benchmarks for clean energy use and greenhouse gas emissions across nickel production.

The complete Nickel Industry Decarbonization Roadmap (Bahasa) document is available for download here.
 

Media Contact:
Muhammad Reza Rahmaditio, Critical Minerals Transition Project Lead, WRI Indonesia, reza.rahmaditio@wri.org


Enggi Dewanti, Senior Communications Specialist, WRI Indonesia, enggi.dewanti@wri.org 

 

About WRI Indonesia
WRI Indonesia, established in Indonesia under the name Yayasan Institut Sumber Daya Dunia (World Resources Institute Foundation), is an independent research organization dedicated to contributing to Indonesia’s inclusive and sustainable socioeconomic development. Our work focuses on five key portfolios: forests, climate, energy, cities & transportation, and the ocean. We turn big ideas into action at the intersection of the environment, economic opportunity, and human well-being.