Indonesia Surpasses China as Top Global Refined Nickel Producer
By Ian Williams, manager
updated:
Over the past decade, Indonesia’s refined nickel production didn't just grow, it exploded. Output surged more than 60-fold, leaping from a modest 22,000 tonnes in 2014 to over 1.4 million tonnes in 2023. This massive expansion pushed Indonesia’s share of global production from just 1% to 41%, dethroning China to claim the top spot worldwide.
Behind this boom is a major push into local refining, driven by government policies prioritizing domestic processing over raw exports. As Our World in Data noted on September 25, 2026, this rapid production growth places Indonesia firmly at the center of the global nickel market.
Indonesia Ascends as Global Leader in Refined Nickel
Indonesia's global share of refined nickel production has skyrocketed from approximately 1% to 41%, surpassing China, Russia, Japan, and Canada to lead the market. This surge stemmed from a strategic policy shift that curbed the export of unprocessed nickel ore, compelling miners to refine and process the ore within the nation. This transformative policy pivoted the industry's focus from primarily mining and exporting raw materials to enhancing domestic processing capabilities.
By 2021, Indonesia not only eclipsed China in refined nickel output but has continued to extend its dominance, largely fueled by Chinese investments. Our World in Data highlighted Indonesia's rise to top global producer, a transformation fueled by significant Chinese capital. The International Energy Agency further underscored this trend, noting that Chinese firms hold substantial stakes across Indonesia’s smelting and refining operations and pointing to foreign investment as a key driver of the country’s downstream boom. At the same time, Jakarta is actively tightening control over its nickel supply and demand—a move that Energy and Mineral Resources Minister Bahlil Lahadalia says is giving Indonesia stronger leverage and firmer footing on the global stage.
Speaking on September 25, 2026, at a blood drive marking the 81st Mining Anniversary in Jakarta, Bahlil noted that the government’s strict control over nickel production volumes, managed through the Work Plan and Budget (RKAB) framework, has helped stabilize market prices.
“Nickel prices are no longer so easily manipulated by external players, which was our main goal all along,” Bahlil said.