Australia Pursues Strategic Investment in Indonesia’s Nickel Resources
Following the re-election of Prime Minister Anthony Albanese, Australia has prioritized engagement with Indonesia to secure investment opportunities in the country’s nickel sector. The discussions, held during the Indonesia-Australia Annual Leaders’ Meeting in May 2025, emphasized collaboration on critical minerals to support clean energy projects and infrastructure development.
The partnership aligns with Australia’s strategic objective to enhance its position as a major supplier in the global critical minerals market, particularly as supply chain dynamics shift due to geopolitical developments. Indonesia, home to two of the world’s five largest nickel reserves, presents significant opportunities for resource development and market diversification.
- Indonesia hosts major nickel reserves at Sorowako and Weda Bay, ranking as the world’s top nickel producer.
- The Australia-Indonesia Climate and Infrastructure Partnership underpins regulatory cooperation for critical mineral supply and project development.
- Strategic implications include strengthened supply chains for electric vehicle battery manufacturing and increased competition with China in mineral processing and export markets.
