Nickel Nationalism Holds Back Indonesia’s Clean Tech Ambitions – by Riandy Laksono (East Asia Forum – March 5, 2026)

Key Takeaways

• 2020 nickel export ban boosted domestic smelting capacity.
• EV exports 2024: $12M, far behind regional peers.
• Battery exports rose to $600M, still trailing Malaysia.
• Resource‑centric policy restricts clean‑tech supply chain growth.
• Labor gains limited to Sulawesi and Maluku regions.

Summary

Indonesia’s 2020 ban on raw‑nickel exports sparked a surge in domestic smelting and processing, positioning the country as a textbook case of resource‑based industrialisation. Yet its clean‑technology ambitions remain modest: EV exports totaled only US$12 million in 2024, dwarfed by Thailand’s US$363 million and Vietnam’s US$192 million. Battery shipments grew from US$9 million in 2021 to nearly US$600 million in 2024, still trailing Malaysia’s US$1 billion and Singapore’s US$721 million. Analysts argue that a nationalist, resource‑driven approach is throttling Indonesia’s integration into the global EV supply chain.

Pulse Analysis

Indonesia’s nickel policy illustrates how strategic trade restrictions can catalyse domestic industry. By outlawing raw‑nickel exports in 2020, the government forced multinational miners to invest in local smelters, creating a nascent downstream sector and modest job growth in Sulawesi and Maluku. This industrial push aligns with broader ambitions to shift from a commodity exporter to a value‑added manufacturer, a transition many resource‑rich economies pursue to diversify revenue streams.

Despite the smelting boom, Indonesia’s clean‑technology footprint remains shallow. Export data reveal EV shipments of just US$12 million in 2024, a fraction of Thailand’s US$363 million and Vietnam’s US$192 million. Battery exports have improved, climbing to nearly US$600 million, yet they lag behind Malaysia’s US$1 billion and Singapore’s US$721 million. The disparity stems partly from limited downstream integration, insufficient R&D investment, and a supply chain that still relies heavily on raw material extraction rather than finished product assembly.

The underlying issue is a form of nickel nationalism that treats the resource as an end rather than a platform for broader innovation. While protecting domestic interests, the rigid policy framework discourages foreign partners from committing to higher‑upvalue activities such as cell manufacturing or EV assembly. To unlock its clean‑tech potential, Indonesia may need to relax export controls, incentivise joint‑venture R&D, and develop a skilled workforce beyond the traditional mining hubs. Such reforms could accelerate its ascent in the regional EV ecosystem and deliver the promised economic transformation.