Nickel is a strategic global commodity driven by the growing demand for batteries and electric vehicles. Indonesia plays a key role as one of the leading producers in the global new energy supply chain. The government continues to strengthen the regulatory framework to support downstream development, investment, and resource sustainability. Nickel industry regulations cover mining, environmental protection, investment, industrial, and energy sectors as an integrated governance foundation. Policy direction now focuses on EV-based downstream industries rather than raw material exports. Regulatory support enhances investment opportunities while providing legal certainty for business actors. Sustainability and ESG principles have become essential in the development of the national nickel industry. With increasing regulatory complexity, legal compliance is crucial to maintaining the competitiveness of the industry.
In recent years, nickel has emerged as one of the world’s strategic commodities due to the growing demand from the battery and electric vehicle (EV) industries. As one of the largest nickel producers in the world, Indonesia holds a significant position in the global supply chain for electric vehicles and renewable energy industries. In line with this development, the Indonesian government continues to strengthen the regulatory framework of the nickel industry to support downstreaming, enhance investment attractiveness, and ensure sustainable natural resource management.
The development of Indonesia’s nickel industry is currently supported by a cross-sector regulatory framework covering mining, environmental protection, investment, industrial development, and renewable energy. These regulations provide the legal basis for the management of the nickel industry while simultaneously supporting the national agenda for downstreaming, investment enhancement, and energy transition. Several key regulations forming the legal foundation of Indonesia’s nickel industry include the following:
Laws
- Law No. 4 of 2009 concerning Mineral and Coal Mining and its amendments;
- Law No. 11 of 2020 concerning Job Creation in conjunction with Law No. 6 of 2023;
- Law No. 32 of 2009 concerning Environmental Protection and Management;
- Law No. 3 of 2014 concerning Industry;
- Law No. 25 of 2007 concerning Investment;
- Law No. 13 of 2003 concerning Manpower and its amendments.
Government Regulations
- Government Regulation No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities and its amendments;
- Government Regulation No. 28 of 2025 concerning the Administration of Risk-Based Business Licensing;
- Government Regulation No. 22 of 2021 concerning the Administration of Environmental Protection and Management;
- Government Regulation No. 26 of 2022 concerning Types and Tariffs of Non-Tax State Revenue at the Ministry of Energy and Mineral Resources;
- Government Regulation No. 14 of 2012 concerning Electricity Supply Business Activities and its amendments.
Presidential Regulations
- Presidential Regulation No. 55 of 2019 concerning the Acceleration of Battery-Based Electric Motor Vehicle Programs;
- Presidential Regulation No. 112 of 2022 concerning the Acceleration of Renewable Energy Development for Electricity Supply;
- Presidential Regulation No. 49 of 2021 concerning Amendments to Presidential Regulation No. 10 of 2021 concerning Investment Business Sectors.
Ministerial Regulations
- Minister of Energy and Mineral Resources Regulations governing mining operations, licensing procedures, RKAB, and supervision of mineral and coal mining business activities;
- Minister of Energy and Mineral Resources Regulations relating to the implementation of good mining practices;
- Minister of Environment and Forestry Regulations concerning AMDAL, hazardous and toxic waste (B3) management, and mining wastewater treatment.
Through these regulations, the government has continued to strengthen the governance of mineral and coal mining sectors, including the nickel industry, covering licensing, operational supervision, reporting obligations, and environmental control. Amendments to the Mineral and Coal Mining Law and its implementing regulations demonstrate the government’s efforts to strengthen legal certainty, enhance oversight of mining activities, and support a more structured and integrated investment environment
On the other hand, the government’s policy direction is no longer solely focused on the export of raw materials, but also on accelerating the downstreaming of the nickel industry. This is reflected in the development of the battery-based electric vehicle industry, which encourages the establishment of a national supply chain, ranging from mining activities and smelter construction to downstream processing industries. Regulatory support in the industrial and investment sectors also creates broader investment opportunities for domestic and foreign market participants in developing the national nickel industry ecosystem while simultaneously providing legal certainty for investors in the mining and nickel processing sectors.
In addition to encouraging investment and downstreaming, the government is also strengthening environmental protection and management aspects in nickel mining activities. Obligations related to AMDAL preparation, hazardous and toxic waste (B3) management, and mining wastewater treatment form an essential part of implementing good and sustainable mining practices. Accordingly, the development of the nickel industry is expected not only to contribute to national economic growth but also to uphold environmental sustainability and environmental, social, and governance (ESG) principles, which are increasingly becoming a major concern within the global industry. As Indonesia’s nickel industry continues to grow and regulatory complexity in the mining and downstream sectors increases, the need for comprehensive legal assistance is becoming increasingly important. SW Counselor at Law has experience in providing legal services to market participants in the mining, investment, and industrial sectors in supporting legal compliance and business development activities in Indonesia.
Looking ahead, Indonesia’s nickel industry is projected to expand further as an essential part of the global supply chain for electric vehicles and renewable energy. Nevertheless, the regulatory complexity governing this sector also requires market participants to fully understand and ensure compliance from mining, environmental, investment, and corporate governance perspective. With Indonesia positioned as one of the key players in the global nickel supply chain, the successful implementation of adaptive and integrated regulations will become an important factor in maintaining the competitiveness of the national industry while simultaneously supporting the energy transition agenda and sustainable development.
