Assessment of Demand and Supply of Critical Minerals for Net-Zero Emissions in Indonesia by 2060

Indonesia
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), 2024 - 2025

Indonesia’s ambitious journey toward achieving its Net-Zero Emissions (NZE) target by 2060 is supported by a comprehensive assessment of critical minerals (CRMs). These minerals—essential for low-carbon technologies—play a key role in enabling the country’s energy transition and green economic growth. With its abundant reserves of nickel, cobalt, and other CRMs, Indonesia is uniquely positioned to become a global leader in renewable energy and electric vehicle (EV) battery value chains.

This project focuses on evaluating Indonesia’s geological reserves, extraction capacities, and supply chain vulnerabilities for 47 identified CRMs. By analyzing both domestic and global markets, the project aims to highlight the opportunities and challenges of balancing sustainable resource management with economic growth. The study addresses the importance of CRMs, such as nickel as an important metal for the country, in driving renewable energy infrastructure, EV battery production, and energy storage systems. Activities include analyzing national decarbonization scenarios, mapping mineral reserves, assessing domestic processing capacities, and forecasting supply-demand dynamics under NZE scenarios. Findings aim to find Indonesia’s potential to become a global hub for NZE production, processing, and export.

Collaboration with key stakeholders—including the Ministry of Energy and Mineral Resources (MEMR), the Directorate General of New Renewable Energy and Energy Conservation (EBTKE), private sector partners, and civil society organizations (CSOs)—is integral to the project. The Projekt Consult team develops a tool to calculate CRM supply-demand balances, supporting policymakers in strategic planning for Indonesia’s energy future. The project also integrates Environmental, Social, and Governance (ESG) principles to minimize mining impacts, promote sustainable practices, and ensure alignment with international standards. By fostering green energy innovation and creating domestic value chains, the project aims to strengthen Indonesia’s position in the global CRM market while supporting its clean energy ambitions.

Contact

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