Country profile – Indonesia

The document details Indonesia's strategic position in the global minerals market, particularly nickel, driven by aggressive downstream processing policies and export bans. It highlights the economic significance of mining (11% of GDP) and the associated environmental costs, including rising energy-sector emissions and deforestation. Socially, it notes significant gender disparities in the mining workforce and the prevalence of artisanal mining risks.

• Indonesia has become a dominant global force in the nickel market, with its share of world nickel mine production increasing from 6% in 2015 to 70% in 2024. This growth is largely attributed to the implementation of high-pressure acid leaching (HPAL) projects and a strategic shift toward domestic processing.
• The Indonesian government uses raw material export bans to force foreign investment in domestic refining and processing. A ban on nickel ore was first introduced in 2014, temporarily relaxed in 2017, and fully reinstated in January 2020. A similar ban on bauxite exports was implemented in 2023.
• The mining sector contributes 11% to Indonesia's GDP, with coal providing the largest share (56%), followed by nickel (26%) and copper (10%). The industry leverages 'captive' coal power plants, where refiners operate their own mines to power energy-intensive processing facilities.
• Environmental indicators show a significant increase in energy sector-related emissions, which rose 126% between 2000 and 2022. Additionally, tree cover loss increased from 740,000 hectares per year in 2001 to 1,100,000 hectares per year in 2024.
• Women are significantly underrepresented in the mining workforce, accounting for less than 10% of employees in 2023. There is also a documented gender wage gap, with women earning an average monthly wage of IDR 4,260,000 compared to IDR 5,120,000 for men.
• Artisanal and small-scale mining (ASM) is prevalent, with approximately 250,000 miners extracting gold, tin, and diamonds. These activities often lead to aquatic ecosystem degradation through mercury use in gold amalgamation and offshore dredging for cassiterite.

APA

International Institute for Sustainable Development (2026). Country profile – Indonesia. https://www.iisd.org/system/files/2026-05/country-profile-indonesia.pdf

Chicago

International Institute for Sustainable Development. Country profile – Indonesia. 2026. https://www.iisd.org/system/files/2026-05/country-profile-indonesia.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Country profile – Indonesia |date=April 2026 |url=https://www.iisd.org/system/files/2026-05/country-profile-indonesia.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2026country, author = {{International Institute for Sustainable Development}}, title = {{Country profile – Indonesia}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = apr, url = {https://www.iisd.org/system/files/2026-05/country-profile-indonesia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }