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Indonesia Officially Restricts New Nickel Smelter Investments

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Algo Research Team

Industry | Nov 11, 2025 | Views: 363

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Key Summary:

  • New nickel smelter restriction under PP 28/2025
  • Targets downstreaming beyond nickel products
  • Aims to stabilize prices and attract investments

The Indonesian government has restricted new permits for nickel smelter projects through the Industrial Business License (IUI) mechanism, stipulated under Government Regulation (PP) No. 28/2025.


What’s the highlight? Under the new regulation, the government will no longer issue permits for smelters that only refine nickel ore into intermediate products such as ferronickel (FeNi), nickel pig iron (NPI), nickel matte, or mixed hydroxide precipitate (MHP).

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