Indonesia

Indonesia

The extractive sector remains key for Indonesia, now balancing the need to reduce coal reliance with leveraging its nickel wealth for clean energy.

Yanuar Dani Alfarizi / iStock
Yanuar Dani Alfarizi / iStock

The extractive sector has long played an important role for Indonesia’s economy, representing around 9 percent of GDP and nearly 30 percent of exports. The global push for climate action and the transition away from  fossil fuels presents a significant challenge for a country heavily reliant on coal production and consumption. At the same time, Indonesia’s wealth in transition minerals–particularly nickel, copper and tin–positions it as a key supplier for clean energy technologies. To seize these opportunities, the government has developed an ambitious value addition (downstreaming) policy, especially for nickel. A just transition and adherence to strong environmental, social and governance (ESG) standards are crucial for producing regions.

After being active in in Indonesia until 2020, NRGI reengaged in 2024 in the country, partnering with civil society, research institutions and government stakeholders focused on the energy transition and governance of transition minerals. NRGI provides analysis and convenes stakeholders to advance policies that promote improved governance standards, equitable economic development and social and environmental justice.

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