Published by LPEM FEB UI (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia), this policy paper assesses market risks across Indonesia’s critical mineral supply chains, primarily focusing on nickel, copper, and bauxite. While downstreaming policies have successfully attracted investment, the report identifies major vulnerabilities: heavy reliance on Chinese capital and market demand, rapid shifts in battery technologies away from nickel, and tightening global ESG requirements. To maximize long-term value creation, LPEM FEB UI calls for institutional governance reforms, embedding risk evaluations directly into policy design, and establishing early-warning systems to navigate market uncertainties.
