The Geopolitics of Critical Minerals: an International Relations Perspective on Indonesia's Nickel Downstream Policy
Article Sidebar
-
global supply chain, Indonesia downstream policy, international relations
Abstract
The global race for critical minerals has transformed nickel into a strategic asset in contemporary geopolitics. Indonesia, possessing one of the world’s largest nickel reserves, has adopted a downstream policy to assert greater control over its mineral resources and strengthen national economic sovereignty. This study aims to analyze Indonesia’s nickel downstream policy from an international relations perspective, emphasizing its geopolitical, economic, and strategic implications. Using a qualitative method with a descriptive-analytical approach, the research draws on policy documents, trade data, and scholarly discourse to interpret Indonesia’s positioning within global power dynamics. The findings reveal that the policy reflects Indonesia’s attempt to transition from a resource supplier to a value-added industrial hub, balancing between China’s technological dominance and Western market access. Moreover, the policy redefines Indonesia’s bargaining power in international trade and its alignment in global supply chains for electric vehicles and renewable energy. The study concludes that Indonesia’s nickel strategy represents a form of resource nationalism adapted to 21st-century multipolar competition, offering insights into how developing nations can leverage critical minerals for geopolitical advantage.
Full text article
References
Amalina, E. N., Yusida, E., & Wijayanti, F. (2024). Indonesia’s export comparative and competitiveness advantages in the ‘emerging market’ scheme during the pandemic. R-Economy, 10(1), 74–90. Scopus. https://doi.org/10.15826/recon.2024.10.1.005
Arida, A., Masbar, R., Majid, M. S. A., & Indra, I. (2023). DOES VERTICAL ASYMMETRIC PRICE TRANSMISSION EXIST IN THE RICE MARKETS? Agricultural and Resource Economics, 9(1), 69–90. Scopus. https://doi.org/10.51599/are.2023.09.01.04
Arifin, M. Z., Wicaksono, A., Bowoputro, H., Ghufron, R. R., & Abdurrahman, M. Y. (2024). IDENTIFYING THE EFFECT OF ADDING COCONUT COIR ON THE CHARACTERISTICS OF THE TOP LAYER OF PURE NATURAL BUTON ASPHALT CONCRETE WEARING COURSE (AC-WC). Eastern-European Journal of Enterprise Technologies, 4(6(130)), 59–68. Scopus. https://doi.org/10.15587/1729-4061.2024.309733
Arli, D., Pekerti, A., Siaputra, I., Bogomolova, S., & Rundle Thiele, S. (2024). Investigating the effects of food insecurity, self-efficacy, and locus of control on obesity in an emerging markets. Journal of Philanthropy and Marketing, 29(3). Scopus. https://doi.org/10.1002/nvsm.1872
Asdak, C., & Yulizar, Y. (2024). Transboundary water resources management and food security: An Indonesian perspective. World Water Policy, 10(2), 553–565. Scopus. https://doi.org/10.1002/wwp2.12193
Budhijanto, W., Marleni, N. N. N., Wulaningtyas, A. H., Istiqomah, I., Ahmad, J. S. M., & Marbelia, L. (2024a). Techno-economic analysis on community-based municipal solid waste processing facilities: A case study in Sleman Regency Indonesia. Environmental Development, 52. Scopus. https://doi.org/10.1016/j.envdev.2024.101083
Budhijanto, W., Marleni, N. N. N., Wulaningtyas, A. H., Istiqomah, I., Ahmad, J. S. M., & Marbelia, L. (2024b). Techno-economic analysis on community-based municipal solid waste processing facilities: A case study in Sleman Regency Indonesia. Environmental Development, 52. Scopus. https://doi.org/10.1016/j.envdev.2024.101083
Chandra, A., Garrett, R. D., Carlson, K. M., Heilmayr, R., Stigler, M., Benedict, J. J., & Grabs, J. (2024). How well does the implementation of corporate zero-deforestation commitments in Indonesia align with aims to halt deforestation and include smallholders? Environmental Research Letters, 19(4). Scopus. https://doi.org/10.1088/1748-9326/ad33d1
Chen, F., An, P., Xu, Q., Jiang, T., An, H., & Qu, S. (2025). Exploring key countries in the tungsten industry chain under the BRI: a spatiotemporal and multilayer trade dependence network perspective. Resources, Conservation and Recycling, 221. Scopus. https://doi.org/10.1016/j.resconrec.2025.108395
Daryanti, D., Sudarwanto, A. S., Sujadmiko, B., & Sabatira, F. (2025). Community participation as a human right: Perspective of Indonesia’s nickel downstream on the natural resource curse phenomenon. Jurnal Hukum Novelty, 16(1), 64–84. Scopus. https://doi.org/10.26555/jhn.v16i1.29453
Fathurahman, H., Kaliani Sundram, V. P. K., Nugroho, B. Y., & Muhamed, A. A. (2025). Mapping Priority of Policy Program in Value Chain Operation for Sustainability Indonesia Palm Oil Industry. Journal of Ecohumanism, 4(2), 368–388. Scopus. https://doi.org/10.62754/joe.v4i2.6127
Fikri, M. A. H., Novita, Y. D., & Gusthomi, M. O. (2023). Development of the national food system through digitalization and downstreaming to strengthen national food security. Indonesian Journal of Environmental Law and Sustainable Development, 2(2), 169–198. Scopus. https://doi.org/10.15294/ijel.v2i2.76637
Gandhi, P., & Takanashi, F. (2025). The development of an integrated and sustainable palm oil downstream industry: Evidence from Indonesia. Journal of International Studies, 18(2), 188–207. Scopus. https://doi.org/10.14254/2071-8330.2025/18-2/11
Gradiyanto, F., Parmantoro, P. N., & Suharyanto, S. (2025). Impact of climate change on Kupang River flow and hydrological extremes in Greater Pekalongan, Indonesia. Water Science and Engineering, 18(1), 69–77. Scopus. https://doi.org/10.1016/j.wse.2024.03.005
Gunawan, Y., Nur Rifqi Amirullah, M., & Arumbinang, M. (2023). ICJ Jurisdiction Over the Case of Policy to Stop Nickel Exports: European Union v. Indonesia. Jambe Law Journal, 6(1), 1–22. Scopus. https://doi.org/10.22437/jlj.6.1.1-22
Hardon, A., Dey, T., Pakasi, D., Taqueban, E. M., Hidayana, I., & Nichter, M. (2025). Confronting the material and structural leakiness of plastics: Insights from multi-sited ethnography in India, Indonesia and the Philippines. Cambridge Prisms: Plastics, 3. Scopus. https://doi.org/10.1017/plc.2025.10022
Hendrastiti, T. K., Kusujiarti, S., & Sasongko, R. N. (2023). The Narratives of Local Women’s Resilience in Disaster and Climate Change: The Voices of Indonesian Women in the Watershed Areas. Indonesian Journal of Socio-Legal Studies, 3(1). Scopus. https://doi.org/10.54828/ijsls.2023v3n1.4
Herry Purnomo, B., Novita, E., Setiawati, A., Wahono, P., Pradana, H., Fatoni Kurnianto, M., Pramulya, R., Rahmah, D., Sutrisno, A., & Amiluddin, A. (2025). System Dynamic Model of Production Control in Indonesia’s Robusta Coffee Downstream Agroindustry (A case study). Coffee Science, 20. Scopus. https://doi.org/10.25186/.v20i.2300
Ibrahim, N., & Wuri Handayani, P. W. (2025). BUSINESS INTELLIGENCE SYSTEM ADOPTION IN THE HOTEL INDUSTRY: IDENTIFYING BARRIERS AND ACTIONS. Interdisciplinary Journal of Information, Knowledge, and Management, 20. Scopus. https://doi.org/10.28945/5602
Ichsan, M., Pye, O., Saputra, W., & Bakhtiar, I. (2025). Institutional change and the framing of palm oil-based biofuel development in Indonesia: In the national interest? South East Asia Research, 33(2), 183–204. Scopus. https://doi.org/10.1080/0967828X.2025.2501534
Khalil, S. B., & Broughel, A. (2025). Stainless success, battery lag: Evaluation of Indonesia’s resource nationalism in nickel. Extractive Industries and Society, 23. Scopus. 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. Scopus. https://doi.org/10.28946/slrev.Vol7.Iss2.2734.pp335-349
Kusnandar, n., Setyowati, N., & Rahayu, W. (2023). Strategic Orientations to Strengthen Policymaking: Study of Small-Scale Cassava-Based Agroindustry in Central Java, Indonesia. Agraris, 9(1), 113–128. Scopus. https://doi.org/10.18196/agraris.v9i1.183
Li, Y., Wen, Y., Chen, B., Fu, X., & Wu, Y. (2023). The dilemma and potential development of biodiesel in China—In view of production capacity and policy. Energy for Sustainable Development, 75, 60–71. Scopus. https://doi.org/10.1016/j.esd.2023.05.005
Lubis, M. I., Linkie, M., & Lee, J. S. H. (2024). Tropical forest cover, oil palm plantations, and precipitation drive flooding events in Aceh, Indonesia, and hit the poorest people hardest. PLOS ONE, 19(10 October). Scopus. https://doi.org/10.1371/journal.pone.0311759
Mardiana, S. (2023). Gasoline Policy Simulation to Increase Responsiveness Using System Dynamics: A Case Study of Indonesia’s Gasoline Downstream Supply Chain. International Journal of Energy Economics and Policy, 13(6), 109–118. Scopus. https://doi.org/10.32479/ijeep.14933
Ma’ruf, M. I., Ngo, D. M., Bacsi, Z., & Bozsik, N. (2025). Evaluating the competitiveness of leading coffee-producing nations: A comparative advantage analysis across coffee product categories. Open Agriculture, 10(1). Scopus. https://doi.org/10.1515/opag-2025-0457
Matolisi, E., Damiri, N., Imanudin, M. S., & Hasyim, H. (2024). Conditions of total coliform in the Aur River, Palembang City, South Sumatra, Indonesia. Journal of Degraded and Mining Lands Management, 11(4), 6267–6275. Scopus. https://doi.org/10.15243/jdmlm.2024.114.6267
Muhibuddin, A., Salim, A., Syafri, S., Manaf, M., Surya, B., Barkey, R. A., & Nasution, M. A. (2024). Adaptation and Mitigation Model for Flood Disaster Resilience in West Malangke District, North Luwu Regency, Indonesia. International Journal of Safety and Security Engineering, 14(5), 1627–1633. Scopus. https://doi.org/10.18280/ijsse.140529
Mulato, A., Metusalach, M., Fachry, M. E., & Amir, N. (2025). Can the Competitiveness of Indonesian Frozen Cephalopod Commodities in the Chinese Market Improve with Product Downstreaming? Egyptian Journal of Aquatic Biology and Fisheries, 29(1), 887–910. Scopus. https://doi.org/10.21608/ejabf.2025.407270
Murwendah, M., & Desyani, W. (2023). HIGH TAX BURDEN REDUCES COMPETITIVENESS: A STUDY OF THE COCOA INDUSTRY IN INDONESIA. Journal of Indonesian Economy and Business, 38(3), 211–228. Scopus. https://doi.org/10.22146/jieb.v38i3.4408
Nahib, I., Amhar, F., Wahyudin, Y., Ambarwulan, W., Suwarno, Y., Suwedi, N., Turmudi, T., Cahyana, D., Nugroho, N. P., Ramadhani, F., Siagian, D. R., Suryanta, J., Rudiastuti, A. W., Lumban-Gaol, Y., Karolinoerita, V., Rifaie, F., & Munawaroh, M. (2023). Spatial-Temporal Changes in Water Supply and Demand in the Citarum Watershed, West Java, Indonesia Using a Geospatial Approach. Sustainability (Switzerland), 15(1). Scopus. https://doi.org/10.3390/su15010562
Novra, A., Fatati, F., Devitriano, D., & Syarif, S. (2023). COMPOST FERTILIZER BUSINESS SUPPLY CHAIN MANAGEMENT STRATEGY FOR STABILITY OF POTENTIAL ADDED VALUE OF WASTE RAW MATERIALS IN JAMBI PROVINCE, INDONESIA. African Journal of Food, Agriculture, Nutrition and Development, 23(3), 22670–22693. Scopus. https://doi.org/10.18697/ajfand.118.21625
Nur, A. I., Al-Fatih, S., & Intania, C. C. (2024). Revitalising Indigenous Rights Participation in Mining Lawmaking Process: Evaluation and Proposal for Indonesia. Law Reform: Jurnal Pembaharuan Hukum, 20(1), 188–210. Scopus. https://doi.org/10.14710/lr.v20i1.63684
Panjaitan, M., Sardjono, A., & Nursadi, H. (2025). Design for strengthening and optimizing business investment policies in the Indonesian palm oil plantation sector. International Journal of Law and Management. Scopus. https://doi.org/10.1108/IJLMA-09-2024-0340
Prabowo, M., Meutia, M., Mulyasari, W., & Yulianto, A. (2024). FORMULATION OF RICE ACCOUNTING CYCLE IN INDONESIA. Revista de Gestao Social e Ambiental, 18(3). Scopus. https://doi.org/10.24857/rgsa.v18n3-202
Puspitawati, E., Nurdianto, N. R., Pambudi, A., Alamsyah, M. R., Pakerti, K. A., & Maharani, N. D. (2025). Economic Effect of Biodiesel Downstream Industry: An Analysis Based on a Dynamic CGE Model. International Journal of Energy Economics and Policy, 15(1), 437–446. Scopus. https://doi.org/10.32479/ijeep.17428
Rauf, R., Yuslaini, N., Febrian, R. A., & Maulidiah, S. (2024). Policy governance in the plantation sector: Challenges and impacts of palm oil in Riau Province, Indonesia. Journal of Infrastructure, Policy and Development, 8(5). Scopus. https://doi.org/10.24294/jipd.v8i5.3181
Rifa’i, A. (2025). Economy-wide impacts of palm oil downstream in North Sumatra: A CGE approach. World Development Perspectives, 39. Scopus. https://doi.org/10.1016/j.wdp.2025.100706
Sambodo, M. T., Mori, A., & Silalahi, M. (2025). Is It Difficult to Get Out of the Coal Business? Narrative from Coal Mining Companies in Indonesia. Journal of Southeast Asian Economies, 42(1), 53–69. Scopus. https://doi.org/10.1355/ae42-1c
Sejati, A. W., Putri, S. N. A. K., Rahayu, S., Buchori, I., Rahayu, K., Andika Wiratmaja, I. G. A. M., Muzaki, A. J., & Basuki, Y. (2023). Flood Hazard Risk Assessment based on Multicriteria Spatial Analysis GIS as Input for Spatial Planning Policies in Tegal Regency, Indonesia. Geographica Pannonica, 27(1), 50–68. Scopus. https://doi.org/10.5937/gp27-40927
Simbolon, P. G. M., Yusro, M. A., & Taniady, V. (2024). Permanent Sovereignty vs. International Obligations: A Lesson Learned from the Dispute Settlement (DS)-592 between Indonesia and the European Union on International Trade. Lentera Hukum, 11(2), 189–230. Scopus. https://doi.org/10.19184/ejlh.v11i2.43342
Sjafrina, N., Budiyanto, A., Lukas, A., Yani, A., Astuti, P., Arianto, A., Arif, A. B., Marimin, M., Udin, F., Anggraeni, E., & Mahendri, I. G. A. P. (2023). Institutional Model and Strategy for Downstream Development of Shallot Agroindustry in Indonesia. Industrial Engineering and Management Systems, 22(4), 489–502. Scopus. https://doi.org/10.7232/iems.2023.22.4.489
Sulaiman, A. A., Amruddin, A., Bahrun, A. H., Yuna, K., & Keela, M. (2024). New Challenges and Opportunities of Indonesian Crude Palm Oil in International Trade. Caraka Tani: Journal of Sustainable Agriculture, 39(1), 94–106. Scopus. https://doi.org/10.20961/carakatani.v39i1.81957
Sutawi, S., Wahyudi, A., Malik, A., Hidayati, A., Rahayu, I. D., & Hartatie, E. S. (2023). Re-Emergence of Foot and Mouth Disease Outbreak in Indonesia: A Review. Advances in Animal and Veterinary Sciences, 11(2), 264–271. Scopus. https://doi.org/10.17582/journal.aavs/2023/11.2.264.271
Zaki, M. R. S., Armanto, M. H., Albar, R. A. H., & Koos, S. (2023). Safeguarding Sovereignty: Indonesia’s Solution to the Raw Materials Case in WTO. Indonesian Journal of International Law, 20(4), 725–752. Scopus. https://doi.org/10.17304/ijil.vol20.4.5
Zhang, H., Huang, X., Zhang, Y., & Wang, X. (2024). Mechanisms of demand shortage risk propagation in the multi-layer trade network of global tungsten industry chain. Resources Science, 46(5), 948–959. Scopus. https://doi.org/10.18402/resci.2024.05.08
Zhang, P., Zhang, H., Sun, X., Li, P., Zhao, M., Xu, S., Jiao, X., Sun, Z., & Zhang, T. (2023). Research on carbon emission standards of automobile industry in BRI participating countries. Cleaner and Responsible Consumption, 8. Scopus. https://doi.org/10.1016/j.clrc.2023.100106
Authors
Copyright (c) 2026 Nofirman Nofirman, Shamsul Anwar, Azimah Haji Ali, Bina Magar
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
