Indonesia is poised to become a global leader in the battery industry, leveraging its vast nickel reserves—the largest in the world—to supply critical materials essential for the global energy transition. Since 2020, the Government of Indonesia (GoI) has banned nickel ore exports, with the goal of developing a comprehensive, end-to-end mineral supply chain that includes electric vehicle (EV) battery production. This strategic move has already yielded significant results, indicated by a tenfold increase in the export value of intermediate products compared to pre-ban levels.

However, this rapid progress has not been without challenges. Environmental and social concerns have drawn the attention of international markets. Indonesia’s industrial sector is one of the most carbon-intensive globally, and there are additional concerns related to deforestation, pollution, and human rights. As a result, global markets are adopting stricter environmental standards. For example, the European Union (EU) has introduced the EU Battery Regulation, which takes effect in 2024 and will impose a maximum carbon footprint threshold for batteries by 2027. At the corporate level, there is a growing trend of sustainability standards increasingly required by buyers.

In response to these external sustainability trends and to align economic development with climate commitments, the GoI, through the Ministry of Development Planning (Bappenas), is developing a National Roadmap for Nickel Industry Decarbonization. The roadmap is expected to be completed by October 2024, and the COP event presents an ideal opportunity to share these findings. Through this initiative, Indonesia can demonstrate its commitment to progress and improvement in addressing these critical issues.