Nickel is a valuable mineral mining commodity in the global market. This mineral can be used to produce stainless steel, batteries, and raw materials for various other industries.
Indonesia is recorded as the world's number one nickel producer and holds the largest nickel reserves globally.
According to data from the Ministry of Energy and Mineral Resources (ESDM), the majority of national nickel reserves are located in Central and Eastern Indonesia.
"Indonesia's nickel reserves are mostly, or 90%, spread across Central Sulawesi, South Sulawesi, Southeast Sulawesi, and North Maluku," stated the Ministry of ESDM in its report, *Indonesia's Nickel Investment Opportunities*.
When accumulated by island, in 2020 the potential nickel reserve volume on Sulawesi Island reached 2.6 billion tons of ore. Then the potential reserves on Maluku Island were 1.4 billion tons of ore, and on Papua Island 60 million tons of ore.
The Ministry of ESDM stated that in 2020 global nickel demand reached 2.4 million tons, and about two-thirds of it was used for stainless steel production.
Demand is then projected to continue to rise in the future, especially for the production of electric vehicle (EV) batteries.
"(Nickel demand for) EVs will increase significantly over two decades. Global nickel demand will exceed 4 million tons by 2040," said the Ministry of ESDM.
"In 2040 (nickel demand for) stainless steel will be 1.9 million tons, an increase from 1.65 million tons in 2019. Demand from the battery sector will increase from 163,000 tons to 1.22 million tons," it continued.