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

This briefing examines the reliance of Indonesia's nickel processing sector on captive coal power and outlines pathways toward decarbonisation to maintain global competitiveness and market access.

• Indonesia's nickel processing hub relies heavily on captive coal due to established supply chains and logistical ease in remote industrial parks. Captive coal capacity surpassed 15 GW in 2024 and is projected to exceed 32 GW by 2031, which would be larger than the total coal fleet of Vietnam.
• Several policy and governance barriers hinder the transition to renewables in the nickel sector. These include PR 112/2022 exemptions that allow 'strategic industries' to operate captive coal, split mandates between energy and industry sectors that obstruct smart siting, and own-use licensing that discourages the sharing of renewable energy.
• Transitioning to 'green nickel' is framed as a matter of economic competitiveness rather than mere compliance. While coal-powered nickel faces market-access risks, modelling of Special Economic Zones (SEZs) suggests that integrating clean power would lead to 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} }