INVESTMENT IN THE MINERAL INDUSTRY SECTOR (NICKEL) AND INDONESIA'S ECONOMIC TRANSFORMATION

Abstract

Nickel, as a strategic mineral, holds an important position in the development of value-added industries, particularly through downstreaming policies and the construction of an electric vehicle battery ecosystem. This research employs a descriptive qualitative approach supported by secondary quantitative data, obtained through literature reviews, official statistical documentation, and interviews with relevant stakeholders. The research findings indicate that investment in the nickel sector significantly contributes to increasing the added value of the commodity, expanding processing capacity through smelter construction, diversifying exports of processed mineral products, and strengthening the battery industry supply chain. Additionally, investment also creates jobs, increases regional income, and drives the growth of industrial areas in nickel-producing regions. Nevertheless, this study also identified a number of challenges, particularly regarding legal certainty, environmental impact, dependence on foreign technology, and socio-economic inequality in mining areas. Overall, this study concludes that investment in the nickel industry sector is an important catalyst in Indonesia's economic transformation towards a more value-added and future-oriented economic structure. However, the success of this transformation requires policy synergy, strengthened governance, and the application of sustainability principles to ensure that economic benefits are achieved optimally and sustainably.