Indonesia's nickel consolidation will give domestic mine owners greater leverage over foreign smelter operators.

Launching in January 2027, the Indonesia Commodity and Mineral Exchange will establish domestic price floors as Jakarta simultaneously restrains nickel output. Tighter ore supply will hit standalone processors hardest, particularly foreign-funded smelters that depend on purchases from third-party mines. Because foreign companies can only hold minority stakes, they will need to partner with domestic mining firms. With Indonesia supplying roughly two-thirds of the world's nickel, tighter control will frustrate the US and China as Jakarta’s leverage over their battery supply chains grows.