Resource Nationalism and Indonesia’s Nickel Ore Export Restriction Policy, 2020-2025
DOI:
https://doi.org/10.61194/ijss.v7i4.2752Keywords:
resource nationalism, nickel ore export restriction, mineral downstreaming, indonesia, international tradeAbstract
The growing strategic importance of nickel in the global energy transition has increased attention to Indonesia’s mineral governance and its policy of restricting raw nickel ore exports. Indonesia introduced a full restriction on raw nickel ore exports in 2020 within a broader regulatory framework aimed at increasing domestic mineral processing and value addition. This study asks how Indonesia’s nickel ore export restriction policy during 2020-2025 exhibits the localizing and industrializing dimensions of resource nationalism. Drawing on Eve Warburton’s concept of resource nationalism, the analysis examines localizing through measures that strengthen domestic control over nickel supply and export channels, and industrializing through measures and developments related to domestic processing, refining, and downstream nickel production. The study employed a qualitative case study design based on documentary analysis of mining regulations, government policy documents, official reports, academic publications, industry reports, and other relevant secondary sources. Empirical evidence is categorized according to the two analytical dimensions and compared across sources. The analysis indicated that the export restriction is associated with stronger domestic control over raw nickel supply and expanded domestic processing and downstream production. However, this industrial expansion occurred alongside substantial foreign investment and continued dependence on foreign technology and ownership. The study contributes an instrument-level account of the restriction that separates what it localized in law and territory from what remained under foreign ownership.
References
Barbieri, M., Catania, G., Hayter, M., Aleo, G., Zanini, M., Sasso, L., & Bagnasco, A. (2025). Desk review as a methodological approach for identifying policies and gray literature: A case study. Nursing Outlook, 73(6), Article 102547. https://doi.org/10.1016/j.outlook.2025.102547
Barizi, M. H., & Triarda, R. (2023). Rantai pasokan global dan nasionalisme sumber daya alam: Kajian terkait hilirisasi nikel di Indonesia [Global supply chains and natural resource nationalism: A study of nickel downstreaming in Indonesia]. Indonesian Journal of International Relations, 7(2). https://doi.org/10.32787/ijir.v7i2.466
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27-40. https://doi.org/10.3316/QRJ0902027
Castillo, R., Blumenthal, L., & Purdy, C. (2022, September 21). Indonesia's electric vehicle batteries dream has a dirty nickel problem. Brookings Institution. https://www.brookings.edu/articles/indonesias-electric-vehicle-batteries-dream-has-a-dirty-nickel-problem/
CNBC Indonesia. (2023, June 26). Gak kira-kira, proyek kebanggaan Jokowi raup Rp504,2 triliun [Jokowi's flagship project earns Rp504.2 trillion]. https://www.cnbcindonesia.com/news/20230626081440-4-449138/gak-kira-kira-proyek-kebanggaan-jokowi-raup-rp5042-triliun
Gading, S. (2024, July 22). ESDM setujui produksi 240 juta ton bijih nikel di 2024 [ESDM approves production of 240 million tonnes of nickel ore in 2024]. detikFinance. https://finance.detik.com/energi/d-7451541/esdm-setujui-produksi-240-juta-ton-bijih-nikel-di-2024
Government of Indonesia. (2009). Undang-Undang Nomor 4 Tahun 2009 tentang Pertambangan Mineral dan Batubara [Law Number 4 of 2009 on Mineral and Coal Mining]. Lembaran Negara Republik Indonesia Tahun 2009 Nomor 159.
Government of Indonesia. (2010). Peraturan Pemerintah Nomor 23 Tahun 2010 tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batubara [Government Regulation Number 23 of 2010 on the Implementation of Mineral and Coal Mining Business Activities]. Lembaran Negara Republik Indonesia Tahun 2010 Nomor 29.
Government of Indonesia. (2020). Undang-Undang Nomor 3 Tahun 2020 tentang Perubahan atas Undang-Undang Nomor 4 Tahun 2009 tentang Pertambangan Mineral dan Batubara [Law Number 3 of 2020 on the Amendment to Law Number 4 of 2009 on Mineral and Coal Mining]. Lembaran Negara Republik Indonesia Tahun 2020 Nomor 147.
Government of Indonesia. (2021). Peraturan Pemerintah Nomor 96 Tahun 2021 tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batubara [Government Regulation Number 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities]. Lembaran Negara Republik Indonesia Tahun 2021 Nomor 208.
Government of Indonesia. (2023). Peraturan Presiden Nomor 79 Tahun 2023 tentang Perubahan atas Peraturan Presiden Nomor 55 Tahun 2019 tentang Percepatan Program Kendaraan Bermotor Listrik Berbasis Baterai (Battery Electric Vehicle) untuk Transportasi Jalan [Government Regulation Number 79 of 2023 on the Amendments to Government Regulation Number 55 of 2019 on the Acceleration of the Battery Electric Vehicle Program for Road Transportation]. Lembaran Negara Republik Indonesia Tahun 2023 Nomor 154.
Government of Indonesia. (2024). Peraturan Pemerintah Nomor 25 Tahun 2024 tentang Perubahan atas Peraturan Pemerintah Nomor 96 Tahun 2021 tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batubara [Government Regulation Number 25 of 2024 on the Amendment to Government Regulation Number 96 of 2021]. Lembaran Negara Republik Indonesia Tahun 2024 Nomor 89.
Government of Indonesia. (2025). Peraturan Pemerintah Nomor 39 Tahun 2025 tentang Perubahan Kedua atas Peraturan Pemerintah Nomor 96 Tahun 2021 tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batubara [Government Regulation Number 39 of 2025 on the Second Amendment to Government Regulation Number 96 of 2021].
Gray, R., & Nguyen, D. M. N. (2025, September 30). Indonesian industrialization: Downstreaming up the value chain. Center for Strategic and International Studies. https://www.csis.org/blogs/charting-geoeconomics/indonesian-industrialization-downstreaming-value-chain
Guberman, D., Schreiber, S., & Perry, A. (2024). Export restrictions on minerals and metals: Indonesia's export ban of nickel (Working Paper No. ICA-104). U.S. International Trade Commission, Office of Industry and Competitiveness Analysis. https://www.usitc.gov/publications/332/working_papers/ermm_indonesia_export_ban_of_nickel.pdf
Hampel, C. (2025, June 30). CATL breaks ground on Indonesian battery plant. electrive. https://www.electrive.com/2025/06/30/catl-breaks-ground-on-indonesian-battery-plant
Handayani, L. (2025, January 31). Investasi Sektor Nikel Tahun 2024 Capai Rp153,2 Triliun. Nikel.Co.Id. https://nikel.co.id/2025/01/31/investasi-sektor-nikel-tahun-2024-capai-rp1532-triliun/
Indonesia Business Post. (2023, December 28). Harita operates the world's biggest nickel sulphate factory. https://indonesiabusinesspost.com/1879/business-and-investment/harita-operates-the-worlds-biggest-nickel-sulphate-factory
International Energy Agency. (2023). Total demand for selected minerals by end use in the Net Zero Scenario, 2021–2050 [Data set]. https://www.iea.org/data-and-statistics/charts/total-demand-for-selected-minerals-by-end-use-in-the-net-zero-scenario-2021-2050
International Energy Agency. (2024a). Global critical minerals outlook 2024. https://www.iea.org/reports/global-critical-minerals-outlook-2024
International Energy Agency. (2024b). Prohibition of the export of nickel ore. https://www.iea.org/policies/16084-prohibition-of-the-export-of-nickel-ore
Jordy, J. (2025). Untangling nickel downstreaming: A political economy analysis of Indonesia's Morowali Industrial Park. International Journal of Social and Political Sciences, 2(2). https://doi.org/10.69812/ijsps.v2i2.136
Karyza, D. (2025, April 22). Ministry lambasts LG for exiting battery project in Indonesia. The Jakarta Post. https://www.thejakartapost.com/business/2025/04/22/ministry-lambasts-lg-for-exiting-battery-project-in-indonesia.html
Khalil, S. B., & Broughel, A. (2025). Stainless success, battery lag: Evaluation of Indonesia's resource nationalism in nickel. The Extractive Industries and Society, 23, Article 101677. https://doi.org/10.1016/j.exis.2025.101677
Krustiyati, A., & Gea, G. V. V. (2023). The paradox of downstream mining industry development in Indonesia: Analysis and challenges. Sriwijaya Law Review, 7(2), 335–349. https://doi.org/10.28946/slrev.Vol7.Iss2.2734.pp335-349
Lahadalia, B., Wijaya, C., Dartanto, T., & Subroto, A. (2024a). Into sustainable and equitable nickel downstreaming in Indonesia: What policy reforms are needed?. Migration Letters, 21(3), 620–631. https://migrationletters.com/index.php/ml/article/view/6759
Lahadalia, B., Wijaya, C., Dartanto, T., & Subroto, A. (2024b). Nickel downstreaming in Indonesia: Reinventing sustainable industrial policy and developmental state in building the EV industry in ASEAN. Journal of ASEAN Studies, 12(1), 79–106. https://doi.org/10.21512/jas.v12i1.11128
Libassi, M. (2025). Mineral Intensive: Digging for Batteries and the Case of Indonesian Nickel. Environment and Society, 16(1), 90-111. https://doi.org/10.3167/ares.2025.160106
Marwanto, M., Rumiartha, I. N. P. B., Putri, M., Parsa, I. W., & Yusa, I. G. (2024). Business on nickel downstreaming with China and European Union lawsuits at World Trade Organization. Jurnal IUS Kajian Hukum dan Keadilan, 12(2), 315–329. https://doi.org/10.29303/ius.v12i2.1381
Ministry of Energy and Mineral Resources. (2014). Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 1 Tahun 2014 tentang Peningkatan Nilai Tambah Mineral Melalui Kegiatan Pengolahan dan Pemurnian Mineral di Dalam Negeri [Ministerial Regulation Number 1 of 2014 on Increasing Mineral Value Added through Domestic Mineral Processing and Refining Activities].
Ministry of Energy and Mineral Resources. (2017). Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 5 Tahun 2017 tentang Peningkatan Nilai Tambah Mineral Melalui Kegiatan Pengolahan dan Pemurnian di Dalam Negeri [Ministerial Regulation Number 5 of 2017 on Increasing Mineral Value Added through Domestic Processing and Refining Activities]. Berita Negara Republik Indonesia Tahun 2017 Nomor 95.
Ministry of Energy and Mineral Resources. (2019). Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 11 Tahun 2019 tentang Perubahan Kedua atas Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 25 Tahun 2018 tentang Pengusahaan Pertambangan Mineral dan Batubara [Ministerial Regulation Number 11 of 2019 on the Second Amendment to Ministerial Regulation Number 25 of 2018 on Mineral and Coal Mining Business]. Berita Negara Republik Indonesia Tahun 2019 Nomor 984.
Ministry of Energy and Mineral Resources. (2023). Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 10 Tahun 2023 tentang Tata Cara Penyusunan, Penyampaian, dan Persetujuan Rencana Kerja dan Anggaran Biaya serta Tata Cara Pelaporan Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batubara [Ministerial Regulation Number 10 of 2023 on Procedures for the Preparation, Submission, and Approval of the Work Plan and Budget and Procedures for Reporting the Implementation of Mineral and Coal Mining Business Activities]. Berita Negara Republik Indonesia Tahun 2023 Nomor 713.
Ministry of Trade. (2019). Peraturan Menteri Perdagangan Nomor 96 Tahun 2019 tentang Ketentuan Ekspor Produk Pertambangan Hasil Pengolahan dan Pemurnian [Minister of Trade Regulation Number 96 of 2019 on Export Provisions for Processed and Purified Mining Products].
Muthiariny, D. E. (2024, July 3). Indonesia's Jokowi opens Southeast Asia's largest EV battery factory in Karawang. Tempo. https://en.tempo.co/amp/1886890/indonesias-jokowi-opens-southeast-asias-largest-ev-battery-factory-in-karawang
Nugroho, H., Mendatu, A., Widiatmoko, U., & Muhyiddin, M. (2026). From resource abundance to industrial constraint: Managing upgrading and structural dependencies in Indonesia’s nickel value chain. International Journal of Research and Innovation in Social Science. https://doi.org/10.47772/IJRISS.2026.1014MG0098
OECD. (2024). OECD economic surveys: Indonesia 2024. OECD Publishing. https://doi.org/10.1787/de87555a-en
Rahimpour Golroudbary, S., Kraslawski, A., Wilson, B. P., & Lundström, M. (2023). Assessment of environmental sustainability of nickel required for mobility transition. Frontiers in Chemical Engineering. https://doi.org/10.3389/fceng.2022.978842
Santoso, R. B., Moenardy, D. F., Muttaqin, R., & Saputera, D. (2023). Pilihan Rasional Indonesia dalam Kebijakan Larangan Ekspor Bijih Nikel. Indonesian Perspective. https://doi.org/10.14710/ip.v8i1.56383
Setiawan, V. N. (2024, June 7). Tok! ESDM setujui produksi 240 juta ton/tahun bijih nikel di 2024-2026 [ESDM approves production of 240 million tonnes of nickel ore per year for 2024-2026]. CNBC Indonesia. https://www.cnbcindonesia.com/news/20240607173754-4-544843/tok-esdm-setujui-produksi-240-juta-ton-tahun-bijih-nikel-di-2024-2026
Soamole, S. B. (2025). Indonesia's nickel downstreaming in the geopolitics of the global EV battery industry: A political economy and scenario modeling analysis. Research Square. https://doi.org/10.1007/s13563-025-00588-6
Sudiana, D. R., Dermawan, W., & Lanti, I. G. (2025). Transformation of Indonesia's trade policy on nickel commodities. Ilomata International Journal of Social Science, 6(4), 1438–1450. https://doi.org/10.61194/ijss.v6i4.1863
U.S. Geological Survey. (2024). Mineral commodity summaries 2024. https://doi.org/10.3133/mcs2024
Walker, R., & Palaon, H. (2025). The future of Indonesia's green industrial policy. Lowy Institute. https://www.lowyinstitute.org/publications/future-indonesia-s-green-industrial-policy
Warburton, E. (2018). Our resources, our rules: A political economy of resource nationalism in Indonesia [Doctoral dissertation, Australian National University]. https://doi.org/10.25911/5d67b49938e3a
Warburton, E. (2023). Resource Nationalism in Indonesia: Booms, Big Business, and the State. Cornell University Press. http://www.jstor.org/stable/10.7591/j.ctv35k74tp
Warburton, E. (2024). Nationalist enclaves: Industrialising the critical mineral boom in Indonesia. The Extractive Industries and Society, 20, Article 101564. https://doi.org/10.1016/j.exis.2024.101564
Wilson, J. D. (2011). Resource nationalism or resource liberalism? Explaining Australia's approach to Chinese investment in its minerals sector. Australian Journal of International Affairs, 65(3), 283–304. https://doi.org/10.1080/10357718.2011.563779
World Bank. (2019). Indonesia: Nickel ores and concentrates exports by country. World Integrated Trade Solution (WITS). https://wits.worldbank.org/trade/comtrade/en/country/IDN/year/2019/tradeflow/Exports/partner/ALL/product/260400
World Bank. (n.d.). Indonesia exports by product and partner, HS 260400, 720260, 750110, 750120, and 283324, 2019-2025 [Data set]. World Integrated Trade Solution (WITS). Retrieved October 7, 2026, from https://wits.worldbank.org/trade/comtrade/en/country/IDN/year/2025/tradeflow/Exports/partner/ALL/product/720260
World Trade Organization. (2022). Indonesia—Measures relating to raw materials: Report of the Panel (WT/DS592/R).
Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). SAGE Publications.
Zhang, G., Tan, S., Sun, C., Zhang, K., Deng, B., & Liao, C. (2025). Effects of Ni content on energy density, capacity fade and heat generation in Li[NixMnyCoz]O2/graphite lithium-ion batteries. Micromachines. https://doi.org/10.3390/mi16101075
Zhang, H. (2026). Resilience of critical transition minerals supply chain in the context of strategic rivalry: Implications for the national policy and regulatory frameworks. Journal of Energy & Natural Resources Law, 44(1), 67–93. https://doi.org/10.1080/02646811.2025.2495920
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Muhammad Rafi Anwar, Lia Nihlah Najwah
This work is licensed under a Creative Commons Attribution 4.0 International License.
