Jakarta. The Nickel Institute, a global organisation representing major nickel producers worldwide, is urging nickel producers in Indonesia, the world’s largest holder of nickel reserves, to adopt robust Environmental, Social, and Governance (ESG) standards to meet the rising global demand for responsibly sourced nickel.

Indonesia, which holds 52 percent of the world’s total nickel reserves, plays a critical role in the supply chains of electric vehicle batteries, stainless steel, and other strategic sectors. With roughly 90 percent of its 72 million tons of reserves concentrated in Sulawesi and North Maluku, the country is well-positioned to become a global hub for responsible nickel production.

Unlike other metals with standardized production processes, nickel extraction and processing involve a diverse range of ore types and methods. This complexity requires miners to adopt tailored, science-based sustainability practices, the Nickel Institute said in a recent statement.

“The complexity of nickel production demands a rigorous scientific framework, proactive public policy engagement, and strong communication around ESG compliance,” said Veronique Steukers, President of the Nickel Institute, told the Jakarta Globe recently. “Reputation-building is key to global market acceptance, and the industry must step up to ensure sustainable development.”

To support responsible practices, the Institute backs the Nickel Mark, an assurance framework launched by Copper Mark in 2022 that assesses producers against 33 ESG criteria and verifies their adherence to international sustainability standards. Companies involved in nickel extraction, processing, blending, recycling, or handling are eligible for certification.

The Nickel Institute also collaborates with producers on joint studies, greenhouse gas measurements, and long-term decarbonization strategies to improve sustainability performance and build investor confidence.

In Indonesia, the Institute remains actively engaged. Following its 2024 seminar on “Human Health & Environmental Developments in Indonesia’s Nickel Value Chain,” the Institute is participating in this year’s ESG Forum and the Indonesia Critical Minerals Conference & Expo. These initiatives aim to accelerate ESG adoption across the country’s nickel sector in line with global sustainability goals.

By aligning with ESG principles, the Nickel Institute believes Indonesia’s nickel industry can unlock new market opportunities and solidify its position as a trusted supplier in the global energy transition.