Recent Indonesian government directives signal a significant, state-mandated evolution in the domestic nickel industry, aiming to cure the persistent global supply glut while simultaneously forcing a structural pivot from intermediate products to an integrated electric vehicle (EV) battery value chain. The implementation of Government Regulation (PP) No. 28 of 2025, which emerged in mid-2025, effectively halts the issuance of new Industrial Permits (IUIs) for nickel processing facilities that produce only intermediate products.
This moratorium specifically targets new project applications for Nickel Pig Iron (NPI), nickel matte, and Mixed Hydroxide Precipitate (MHP). The policy dictates that new permits will only be granted to projects that include plans for further downstream processing beyond these intermediate stages. While this move has introduced significant regulatory uncertainty, with industry groups like the Indonesia Nickel Industry Forum (FINI) seeking clarification on its scope, the immediate interpretation is that projects already under construction with secured IUIs will be grandfathered, though ambiguity remains for projects slated for completion after 2027.
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