Antitrust body flags competition risks at IMIP nickel hub

Indonesia’s competition watchdog has warned of potential market distortions in the mining sector, particularly in integrated industrial zones such as the Indonesia Morowali Industrial Park (IMIP), citing risks of monopolistic practices in port and logistics services.

The head of the Business Competition Supervisory Commission (KPPU), M. Fanshurullah Asa, made the comments during a visit to IMIP in Central Sulawesi on Saturday, as part of an outreach programme on Indonesia’s antitrust law.

Integrated industrial zones that combine mining, mineral processing and port services require close oversight, KPPU said, as interlinked business structures could limit competition if access and pricing are not managed transparently.

“Ports are strategic supply-chain nodes. If access and services are not open and non-discriminatory, the risk of competition distortion becomes very real,” Fanshurullah said in a statement on Tuesday.

KPPU said the mining sector has recorded the lowest business competition index among major sectors for eight consecutive years, including in 2025, reflecting persistent structural challenges.

Read also: Zhongtsing’s Phase II nickel matte smelter fully operational at IMIP

The watchdog flagged risks including potential monopolies in port services, unequal access for users, lack of tariff transparency and exclusive agreements that could restrict competition.

KPPU has encouraged IMIP’s management and tenant companies to join its competition compliance programme as a preventive measure, it said.

IMIP, Indonesia’s largest integrated nickel-based industrial zone, is a key part of the country’s downstreaming policy aimed at building domestic processing capacity for products such as stainless steel and electric vehicle battery materials.

The industrial park is owned by a consortium of Indonesian and Chinese investors, including Shanghai Decent Investment Group, a unit of China’s Tsingshan Group, and local firm PT Bintang Delapan Investama.

IMIP has faced criticism over environmental and labour issues, while the government has promoted the zone as a cornerstone of its strategy to develop downstream nickel industries.

Editing by Reiner Simanjuntak