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View all search resultsIndonesia's nickel smelter boom, long promoted as the centerpiece of its downstream industrialization agenda, is entering a new phase. Through Government Regulation No. 28/2025, the government has moved to restrict new smelter permits, prompting questions over whether this signals a response to overcapacity, a recalibration of its downstream strategy or the start of a more measured and deliberate industrial policy.
The IMIP has grown into an almost semiautonomous zone, showing how the state must stay on top of such unchecked developments to fulfill its mandates in ensuring the well-being of both the nation and its people, which necessarily involves securing the environment.
As global governments and organizations convene at the 30th United Nations Climate Change Conference (COP30) in Belém, Brazil, Indonesia is stepping into the limelight as a model for sustainable, low-carbon nickel development.
Oslo's model shows that streamlined regulatory and incentive policies can help propel market evolution toward an EV ecosystem, while a separate study shows that vehicle electrification doesn't necessary require nickel or the resulting social and environmental harms.
The government’s move to effectively restrict new smelter projects has drawn industry concern over the scope of the smelter moratorium, specifically whether it applies to companies that secured their business licenses before the new rules took effect.
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