This year, nickel prices hit a record high, resulting in Indonesia's nickel export profits exceeding 100 trillion Indonesian rupiah since the beginning of the year. Data from the London Metal Exchange shows that as of the close on May 16, 2024, the three-month contract nickel price was reported at $20,054 per ton, up 2.50% in a single day, rising for two consecutive days. Over the past month, nickel prices have maintained an upward trend of nearly 10%. The current price has reached the highest level of 2024 and is approaching the peak level seen in mid-September 2023. With the rise in nickel prices this year, Indonesia has reaped substantial profits from the export of this commodity. According to data from the Central Bureau of Statistics (BPS), the cumulative export value of nickel ore, nickel pig iron, and their products from January to April 2024 reached $6.34 billion, equivalent to 101.44 trillion Indonesian rupiah. In the first four months of this year, total nickel exports accounted for 28.7% of the 2023 export value of $22.1 billion (equivalent to 353.69 trillion Indonesian rupiah).
The nickel industry has grown rapidly, especially since 2020 when the government strictly banned the export of raw minerals, particularly nickel ore, to encourage downstream industry development. President Joko Widodo acknowledged at the time that the ban on raw mineral exports was indeed difficult for raw mineral export companies, but he believed that this downstream plan would ultimately drive social and economic development. More than three years have passed, and the plan has finally yielded results. This can be seen from the rapid development of nickel exports, especially for products that have been processed into nickel pig iron and its derivative products. In 2019, nickel ore exports reached $1.1 billion, but sharply contracted to only $117 in 2020, with the lowest nickel ore export value in 2022 at just $29. The sharp decline in nickel ore exports contrasts sharply with processed nickel products (i.e., nickel pig iron and other nickel derivatives), which have since flourished. In five years, nickel pig iron exports surged nearly 600%, from $2.59 billion to $15.29 billion. The nickel and its derivatives segment soared more than sevenfold, reaching $6.81 billion. Nickel export volume in 2023 also reached its highest level in nearly a decade, surging tenfold. The rapid development of exports has become one of Indonesia's treasures, highly valued in the eyes of the world. Therefore, downstream projects must continue to be intensified to give domestic nickel processed products higher value.
