Jakarta, Indonesia Sentinel — U.S.-based organization has accused Chinese companies of controlling 75 percent of Indonesia nickel refining capacity, raising concerns over supply chain dominance and environmental risks. The claim was made by the Washington-based nonprofit group C4ADS in a recent report.
Since Indonesia banned the export of raw nickel ore in 2020, the sector has aggressively expanded its domestic refining facilities. The organization’s findings highlight China’s strong grip on Indonesia’s nickel industry, a development that could heighten fears about the country’s ability to regulate its own resources.
According to the report, Indonesia’s nickel refining capacity has now reached 8 million metric tons, spread across 33 companies. However, C4ADS’ investigation found overlapping ownership structures, leading to the conclusion that Chinese firms controlled approximately three-quarters of Indonesia’s nickel refining capacity in 2023.
“Indonesia aims to leverage its nickel industry for economic growth. However, the significant foreign influence—particularly from Chinese firms—could limit the country’s ability to control and shape the industry to its own advantage,” C4ADS stated in its report, as reported by Reuters on Thursday (February 6).
The report specifically pointed to two Chinese companies, Tsingshan Holding Group and Jiangsu Delong Nickel Industry Co. Ltd., alleging that together they controlled over 70 percent of Indonesia’s nickel refining capacity in 2023. These companies were among the early investors when Indonesia began pushing for domestic nickel processing.
The report also reflects growing concerns among U.S. stakeholders. China’s dominance in the nickel sector has placed American and European electric vehicle (EV) manufacturers at a disadvantage in the global market. This situation comes amid increasing trade restrictions with China, particularly under the administration of former U.S. President Donald Trump.
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As of now, Indonesia’s Ministry of Energy and Mineral Resources has not issued an official response to the allegations. However, President Prabowo Subianto had previously ordered the formation of a task force to develop the country’s downstream mineral industry with domestic financing.
Energy Minister Bahlil Lahadalia stated that the initiative aims to gradually reduce the perception that foreign entities are reaping the largest benefits from Indonesia nickel industry.
(Raidi/Agung)
