The issue of nickel downstreaming in Indonesia is no longer merely an economic debate—it has become an information battleground involving various actors.
Energy transition has become an increasingly familiar issue among Indonesians, both online and offline.
Nickel downstreaming in Indonesia, which is part of the broader energy transition, is no longer just an economic policy debate. Behind it lies a battlefield of information warfare, involving actors who construct, manipulate, and distort narratives to serve their own interests.
Since the implementation of the nickel ore export ban in 2020, the narrative of nickel downstreaming has become one of the most prominent policy agendas promoted during President Joko Widodo’s administration.
This policy has been framed as a national strategic agenda for development and economic growth.
Through regulatory frameworks such as the Mining Law (UU Minerba) and the Job Creation Law (UU Cipta Kerja), the government established a legal foundation that encourages the expansion of the nickel industry under the pretext of the energy transition and the increase in national economic value-added.
The policy continues under the administration of Prabowo Subianto and Gibran Rakabuming Raka, making it a cross-regime agenda. The claims are clear: increased added value, export growth reaching hundreds of trillions of rupiah, and ambitions to position Indonesia as a key player in the global energy supply chain.
Narrative Amplification
However, conditions on the ground reveal a different reality. In several mining regions, communities face environmental destruction, economic marginalization, and prolonged social conflict. The government’s official narrative is viewed as failing to fully reflect these realities and instead serving as a form of legitimacy for extractive-industry interests.
Even more problematic, the policy is overshadowed by alleged conflicts of interest among political elites involved in policymaking. Several political elites are reportedly linked to mining companies benefiting from downstreaming policies. This raises concerns that the policy is not solely designed for the public interest, but also to protect and expand certain business interests.
Supportive narratives surrounding downstreaming have not emerged organically alone; they have been systematically amplified by various actors.
The dissemination of pro-downstreaming narratives occurs not only through official government channels but also through corporations, mining workers, social media influencers, and even Artificial Intelligence (AI), all of which contribute to the production and spread of misleading narratives about the energy transition.
Industry actors also play a crucial role in shaping public opinion. Individuals affiliated with nickel industrial zones such as Indonesia Morowali Industrial Park (IMIP) and Indonesia Weda Bay Industrial Park (IWIP) produce content promoting the nickel industry, packaged in attractive and highly viral social media formats. However, such content tends to ignore realities on the ground, including environmental issues, labor conditions, and the social impacts on local communities.
The fundamental question, then, is: who truly benefits from nickel downstreaming? And beyond that, is the energy transition being promoted genuinely serving the public interest, or merely reinforcing oligarchic power behind the scenes?
Mapping the Actors in Information Operations
Indonesia’s 7th President, Joko Widodo, has consistently promoted the narrative that nickel downstreaming contributes to economic growth and export value.
Research by Yayasan Indonesia Cerah, titled Dynamics of Energy Transition and Climate Crisis Narratives (2025), states that Widodo is frequently cited as the primary architect of the downstreaming policy.
The following regulations accommodate nickel downstreaming in Indonesia:
- Law No. 4 of 2009 on Mineral and Coal Mining (Minerba): the original legal basis for mineral governance and Indonesia’s value-added policy;
- Law No. 3 of 2020 amending Law No. 4 of 2009: strengthening the legal basis for domestic processing and refining, which forms the core of nickel downstreaming;
- Law No. 11 of 2020 on Job Creation: streamlining investment and licensing procedures while revising mining provisions to support downstream industries through more investment-friendly regulations;
- Ministry of Energy and Mineral Resources Regulation No. 11 of 2019: establishing the export deadline for nickel ore and effectively pushing for domestic ore processing;
- Government Regulation No. 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities: the main implementing regulation governing mining permits, operations, and administrative procedures.
Based on digital tracking conducted collaboratively by Merdeka.com together with Yayasan Indonesia Cerah, Perhimpunan Pengembangan Media Nusantara (PPMN), CELIOS, Monash University Indonesia, Publish What You Pay (PWYP), and Lembaga Pendidikan Internet (LPI), between January 2024 and January 2026 there were 29,800 tweets containing the keyword “Chinese Nickel” and TikTok content using hashtags such as #nikelbersih, #nikelberkelanjutan, and #hilirisasi. The findings revealed organized and patterned narratives. Several TikTok accounts—including AI-generated content accounts with 584,000 followers and influencers with up to 10.1 million followers—amplified pro-government nickel narratives as though they were organic content.
The Surge in Influencer Use Since 2017
The government has indeed mobilized a number of influencers to promote the downstreaming agenda.
According to data from Indonesia Corruption Watch (ICW), during the 2014–2020 period, the total central government budget allocated for digital activities reached Rp1.29 trillion, with Rp90.45 billion specifically allocated for influencer services.
The government’s use of digital media increased significantly beginning in 2017. Although intended to accelerate information dissemination, this phenomenon has raised concerns regarding transparency, accountability, and its impact on the quality of democracy, particularly when used to promote sensitive or controversial public policies.
Influencers have become a new instrument for shaping public opinion. This trend became widespread starting in 2017, with the peak number of procurement packages occurring in 2018.
Regarding energy transition and nickel downstreaming narratives on social media, the collaborative team found notable differences between narratives on X and TikTok. X tends to feature narratives focused on environmental destruction and the harmful impacts of the nickel industry, while TikTok is dominated by narratives highlighting the nickel industry’s economic potential and benefits. The collaborative team’s analysis of tens of thousands of posts on X and hundreds of posts on TikTok demonstrated this contrast.
Amplification by Mining Companies
Beyond influencers on platforms like TikTok, nickel processing companies such as Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi have also become actors amplifying pro-downstreaming narratives.
The largest shareholder of IMIP is Shanghai Decent Investment Group, a subsidiary of Tsingshan Holding Group, one of the world’s largest stainless steel producers, with a 49.69% stake.
Tsingshan and Chinese companies operating within IMIP actively promote the narrative that downstreaming is a “shared success” between Indonesia and China, while concealing the asymmetrical flow of profits. Nearly all nickel smelters that generate high-value-added products are owned by Chinese companies.
Shafa Kalila Aryanti, a researcher at CELIOS and part of the collaborative team, argues that Indonesia’s position in the green industry supply chain remains heavily dependent on China, both as the main export destination and as the dominant player in the national smelter industry.
“Throughout 2020–2024, around 70.25% of Indonesia’s nickel exports were destined for China, while the majority of exported products were still lower-grade nickel products such as ferronickel and nickel pig iron, which are primarily used for stainless steel production rather than directly for electric vehicle batteries,” Shafa stated in an official release.
Similar Narrative Patterns Between Influencers and Corporations
Several TikTok accounts that previously never discussed downstreaming issues suddenly uploaded content supporting nickel downstreaming during certain periods. Meanwhile, accounts belonging to female workers at mining companies frequently portrayed cheerful and “pleasant” working environments.
Not only authentic accounts with millions or thousands of followers, but also inauthentic accounts that frequently upload AI-generated videos have promoted pro-downstreaming narratives. These contents have garnered tens of thousands of likes and been shared hundreds of times.
The collective behavior of these accounts and the narrative patterns they disseminate can be viewed as part of an information operation designed to polish the image of nickel downstreaming.
This situation raises serious concerns about the quality of information available to the public. When the state, corporations, and interested actors all participate in shaping opinion and manipulating information, the public gradually loses the ability to distinguish between facts, framing, and propaganda.
Under these conditions, downstreaming is no longer merely an economic policy—it has become an arena of narrative contestation.
Those opposing downstreaming can easily be labeled as “foreign agents” and may face pressure or intimidation from pro-downstreaming groups.
Source: Merdeka.com