Jakarta (ANTARA) - Indonesia’s decision to ban nickel ore exports in 2020 marked a pivotal moment in managing the country’s critical mineral resources.

The policy, known as downstreaming, aims not only to raise state revenue but also to shift the economic structure from commodity dependence to high-technology manufacturing.

Mining companies that once focused solely on extracting and shipping raw ore are now required to develop smelters and processing facilities.

The Ministry of Industry says nickel downstreaming has brought significant economic benefits. Nickel ore that typically sells for around 30 US dollars per metric ton can reach up to 12,000 US dollars when processed into battery pack materials.

“We will continue to optimize the added value of domestic raw materials so they can be maximized in Indonesia and benefit the public,” Industry Minister Agus Gumiwang Kartasasmita said.

The Economic Research Institute for ASEAN and East Asia (ERIA) notes that Indonesia has the potential to convert its mineral wealth into long-term prosperity.

Critical minerals have become the “new oil” in the geopolitical landscape of the 21st century. Indonesia is at the center of this transformation.

According to the US Geological Survey, the country holds an estimated 55 million tons of nickel reserves, or about 42 percent of global reserves, making it the world’s largest holder.

However, the mining sector continues to face concerns related to environmental impacts. Exploration is often associated with landscape degradation.

This is why the government consistently urges companies to implement good mining practice (GMP), a framework for sustainable mining that includes comprehensive planning, strict safety standards, effective waste management, and land reclamation.

Beyond environmental stewardship, GMP also emphasizes forging positive relationships with surrounding communities through engagement, transparency, and empowerment programs.

By applying these principles, the mining industry is expected to operate responsibly while delivering added value to the regions where it operates.

Implementation Example

An example of sustainable mining can be seen at PT Vale, part of a state-owned enterprise group.

Operating for more than half a century in Sorowako, East Luwu District, South Sulawesi, the company not only produces high-quality nickel matte but also serves as a pioneer of green mining practices in Indonesia.

Together with MIND ID as its holding company, PT Vale plays a strategic role in ensuring that downstreaming does not compromise environmental integrity or community welfare.

Sorowako demonstrates how mining, processing, and reclamation activities can coexist. In Solia, one of the company’s reclamation areas, visitors can witness a complete landscape, nickel processing plants in the distance, restored reclamation zones that have returned to greenery, and the clear waters of Lake Matano.

The panorama shows that mining can align with environmental preservation while still contributing to economic progress.

PT Vale’s Director and Chief Sustainability and Corporate Affairs Officer, Budiawansyah, said the company is accelerating greener mining practices through operational technology transformation in Sorowako.

The company aims to cut emissions by 33 percent by 2030 and reduce the carbon intensity of its nickel products by up to 50 percent.

These targets are supported by innovations such as heat recovery technology, off-gas utilization, ore dewatering optimization, and the electrification of processing infrastructure.

The series of initiatives not only reduces emissions but also improves operational efficiency, which is expected to deliver annual energy savings and lower carbon dioxide output.

Vale’s nickel downstreaming process begins with lithology-based data exploration to design a mine that is both economically viable and environmentally sound.

Before mining starts, conservation teams record endemic species, both flora and fauna, to be protected or cultivated at the company’s nursery centers.

Infrastructure such as haul roads, sedimentation ponds, and drainage systems is built first to ensure mining activities do not harm the surrounding environment.

This approach reflects how the state-owned enterprise views mining not merely as an economic resource, but as an ecosystem that must be preserved.

Reclamation is the core of Vale’s sustainable mining practice. Each area that has been mined is immediately restored. Stored topsoil is returned to the land and planted with various native vegetation that has been previously identified.

Company data shows that reclaimed land in Sorowako is nearly indistinguishable from the original forest, with vegetation success rates reaching 90 percent of natural conditions.

As of April 2025, PT Vale has reclaimed more than 3,800 hectares of mined land, planted over five million trees, and constructed 124 sedimentation ponds to maintain water quality.

The revitalized Himalaya Hill reclamation area has become a symbol of Vale’s progressive restoration efforts. The site, spanning dozens of hectares, now serves as an arboretum and a collection garden for multiple species and functions as a research area and natural seed source.

The company also involves local communities in East Luwu District, training and empowering residents to produce compost, plant trees, and maintain reclamation areas.

Local species such as sengon, eucalyptus, agarwood, damar, mango, and cinnamon are planted so post-mining land can be used without cutting down trees.

Mining with conscience means not only extracting resources but also challenging the perception that mining inevitably damages the environment.

Vale’s approach demonstrates that responsible mining can bring long-term benefits to the land and its people.

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