Indonesia moves to strengthen nickel traceability as ESG scrutiny rises

By Dominikus

Indonesia is moving to strengthen ESG credibility in its nickel supply chain through responsible sourcing certification, digital traceability and improved tailings management, as environmental and compliance standards become increasingly important for mineral market access, Septian Hario Seto, Executive Secretary of the National Economic Council, said at a journalism training side event of the Indonesia Critical Minerals Conference in Jakarta on June 3.

The presentation highlighted the Responsible Mining Initiative, or RMI, as an independent ESG certification framework that promotes responsible sourcing of minerals across supply chains through tools, standards and audit programs.

One of the key mechanisms under RMI is the Responsible Minerals Assurance Process, or RMAP, an audit and certification program used to verify whether smelters and refiners meet responsible sourcing standards.

The presentation said RMAP covers due diligence, traceability and reporting, risk assessment and supplier engagement.

Facilities may be categorized as RMAP Active when they are participating in the process but have not yet completed the full audit. They may be categorized as RMAP Conformant when they have successfully completed an independent third-party RMAP audit.

Indonesia and China were listed as the countries with the highest number of RMAP Conformant nickel facilities, with nine facilities each as of 2025. Other countries in the list included Japan, South Africa, Madagascar, Great Britain, Finland and Australia.

Read also : Indonesia drafts ESG standard for mining as downstream investment surges

The data suggests Indonesia is seeking to position its nickel industry not only as a volume leader, but also as a participant in responsible sourcing systems needed by global mineral supply chains.

The presentation also pointed to the implementation of digital traceability and transparency systems to support government revenue collection and environmental compliance.

Such systems could become increasingly important as Indonesia expands its role in nickel processing, battery materials and other critical mineral industries, where buyers and regulators are paying closer attention to supply chain origin, processing standards and environmental performance.

The ESG agenda is also linked to tailings management. The presentation highlighted the dry stacking method for tailings management in Indonesia, under which tailings are processed into dry cake, arranged and compressed into a mound, restored with native soils and plants, and stored over the long term.

The method is presented as a way to eliminate dam failure risk, while companies are also improving the dry stacking process to create possible economic value from by-products.

The presentation said dry cake could contain around 30% iron content, while iron concentrate could contain around 60% iron content. It also pointed to magnesium content in phosphate compounds as part of the potential value addition from tailings management.

For Indonesia’s nickel sector, the combination of RMAP certification, traceability systems and improved tailings management could help address one of the main challenges facing the country’s downstream mineral strategy: maintaining market confidence as production capacity expands.

The issue is becoming more strategic because Indonesia’s nickel industry is no longer only a mining and smelting story. It is increasingly connected to battery materials, electric vehicles and global energy transition supply chains.

As a result, Indonesia’s ability to prove responsible sourcing, environmental compliance and transparent mineral flows may become a key factor in determining how far its nickel products can move into higher-value international markets.

Editing by Reiner Simanjuntak