Indonesia's reliance on imported sulfur is increasingly becoming a challenge to the sustainable development of the country's nickel downstream industry. Any disruption to global supply chains, particularly from the Middle East, could directly impact the operations of high-pressure acid leach (HPAL) nickel smelters.
Arif Perdana Kusumah, chairman of the Indonesian Nickel Industry Forum (FINI), recently revealed that in 2025, around 75% to 80% of Indonesia's sulfur import demand was met by the Middle East. Of the total 5.3 million tonnes of sulfur imports, Middle Eastern countries accounted for the largest share. He noted that with the closure of the Strait of Hormuz, this highly concentrated supply pattern has already created risks of feedstock shortages for Indonesian HPAL smelters.
Sulfur is a critical raw material for the nickel downstream industry, mainly used to produce sulfuric acid -- the core medium in the HPAL leaching process. Producing one tonne of nickel in the form of mixed hydroxide precipitate (MHP) requires approximately 10 to 12 tonnes of sulfur, making sulfur one of the largest cost components in HPAL production.
Facing the prospect of sulfur supply disruptions that could affect nickel downstream processing plans, the Indonesian government has begun to express concern. Luhut Binsar Pandjaitan, chairman of the National Economic Council, recently met with President Prabowo Subianto to outline the risks of prolonged global conflicts affecting the energy and strategic commodity sectors. The government stated that it has started formulating contingency plans to guard against potential shocks from a worsening global situation.
Written by Cora Ji, jiruyan@mysteel.com
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