Indonesia is the world’s largest nickel producer, and its reserves are critical for the global push toward electric vehicles (EVs) and renewable energy. With rising demand for batteries and sustainable technology, investors are rushing to get a stake in Indonesia’s nickel industry — but this “green gold rush” comes with complex legal challenges.
1. Why Indonesia Matters in the EV Supply Chain
Indonesia controls over 20% of the world’s nickel reserves and has positioned itself as a key player in the battery value chain. Major global companies — including Tesla, LG, CATL, and BYD — have expressed interest or made commitments to invest.
The government has also banned raw nickel exports to encourage downstream processing, prompting investment in smelters and battery factories.
2. Legal Considerations for Nickel Investors
Before jumping in, investors should understand:
- Mining Business Permits (IUP, IUPK) are required to legally extract nickel.
- Smelter investors may receive incentives, but must comply with local content and export requirements.
- Environmental regulations under AMDAL (Environmental Impact Assessment) are strict, especially near forests and indigenous areas.
- Land acquisition laws must be navigated carefully to avoid disputes with local communities.
3. ESG and Government Oversight
Indonesia is under international scrutiny to ensure its mining boom doesn’t come at the cost of environmental damage or labor rights violations.
Investors must align with:
- Environmental, Social, and Governance (ESG) principles
- Local labor laws and community engagement regulations
- Licensing through OSS and BKPM, including post-mining plans and reclamation guarantees
Failure to comply can result in revoked licenses, community protests, or litigation.
4. The Role of Public-Private Partnerships
To meet infrastructure and energy demands, the government is open to public-private collaboration in nickel logistics, port development, and research. These partnerships require clear legal structuring to avoid overlapping obligations or contractual disputes.
Conclusion:
Indonesia’s nickel sector is full of opportunity — but it’s also full of legal risk. Smart investors approach the boom with a strategy grounded in compliance, sustainability, and partnership. Whether you’re exploring mining permits, setting up smelters, or forming joint ventures, Mylaw.id can help your needs — legally and strategically.