From Captive Coal to Green Nickel: Securing Indonesia’s Future Competitiveness

The document highlights that Indonesia's nickel processing sector relies heavily on captive coal, with capacity exceeding 15 GW in 2024 and potentially reaching over 32 GW by 2031. It argues that while coal is currently the cheapest and easiest option, the industry faces market-access risks as global supply chains demand cleaner materials. The briefing recommends a combination of efficiency improvements, industrial clustering, and hybrid renewable energy systems, supported by policy alignment and international cooperation—specifically with China and Australia—to establish green nickel certifications and standards.

• Indonesia's nickel processing sector relies heavily on captive coal due to established supply chains and weak grids in remote industrial parks. This capacity exceeded 15 GW in 2024 and is projected to potentially more than double to over 32 GW by 2031, which would surpass the total coal fleet of Vietnam.
• Several policy and governance barriers hinder the transition to renewables in the nickel sector, including PR 112/2022 exemptions that allow 'strategic industries' to operate captive coal, split mandates between energy and industry departments, and own-use licensing that discourages shared renewable energy infrastructure.
• Transitioning to 'green nickel' is framed as a matter of economic competitiveness rather than mere compliance, as coal-powered nickel faces risks regarding market access and credibility. Integrating clean power into Special Economic Zones (SEZs) is indicated to provide substantial additional investment and value added.

APA

Ember (n.d.). From Captive Coal to Green Nickel: Securing Indonesia’s Future Competitiveness. https://ember-energy.org/app/uploads/2025/11/Summary-notes-.pdf

Chicago

Ember. From Captive Coal to Green Nickel: Securing Indonesia’s Future Competitiveness. n.d. https://ember-energy.org/app/uploads/2025/11/Summary-notes-.pdf.

Wikipedia

{{cite report |author=Ember |title=From Captive Coal to Green Nickel: Securing Indonesia’s Future Competitiveness |url=https://ember-energy.org/app/uploads/2025/11/Summary-notes-.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{emberndfrom, author = {{Ember}}, title = {{From Captive Coal to Green Nickel: Securing Indonesia’s Future Competitiveness}}, institution = {Ember}, url = {https://ember-energy.org/app/uploads/2025/11/Summary-notes-.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }