FLASH: Indonesia Reviews Permits for Semi-Finished Smelters to Push Downstreaming Toward End Products

The Indonesian government is reviewing its policy on permits for smelters that produce only semi-finished products, aiming to push mineral downstreaming toward final products. Bahlil Lahadalia, Coordinating Minister for Downstreaming and Energy Transition and Minister of Energy and Mineral Resources, said on Nov. 4 at Minerba Convex 2026 in Jakarta that most of Indonesia's downstreaming output remains at the intermediate processing stage, at only 50–60%, with capacity already overflowing. The review will determine whether smelters producing semi-finished products should still be allowed or restricted, so that semi-finished feedstock is absorbed by domestic manufacturing rather than entirely exported. Citing nickel, Bahlil noted that Indonesia's nickel export value was only about US$3.3 billion in 2017–2019, but rose to about US$34 billion after the nickel ore export ban and integration of the mine–precursor–cathode–battery cell chain.