PENDIPA Journal of Science Education
Vol 9 No 3 (2025): October

Decarbonizing Indonesia’s Nickel Smelters: Implications for Energy Security, Carbon Pricing, and Green Finance Policies

Sari, Sholihah Eka Permata (Unknown)
Sasongko, Nugroho Adi (Unknown)
Yoesgiantoro, Donny (Unknown)



Article Info

Publish Date
27 Nov 2025

Abstract

As the world’s largest nickel producer, Indonesia faces critical challenges in decarbonizing its nickel smelting sector while maintaining economic growth. This study addresses the lack of integrated assessments of carbon pricing impacts and green finance mechanisms in Indonesia’s nickel industry, using exclusively secondary data from government reports (BPS, MEMR), global databases (IEA, Global Carbon Atlas), and policy documents. A gate-to-gate Life Cycle Assessment (ISO 14044) reveals that Indonesian nickel smelters emit 14.8 tons CO₂-eq per ton of product (IEA, 2023), 25% higher than the global average. Economic modeling, based on nickel price trends (LME, 2020–2023) and carbon tax scenarios, indicates that a $40/ton CO₂ tax would raise production costs by 15%, reducing export competitiveness by 6.2% under current market conditions. Policy analysis highlights the feasibility of green bonds and fiscal incentives for renewable energy adoption, referencing successful cases in the Philippines (RE Law, 2022). These findings provide a data-driven framework for aligning Indonesia’s nickel industry with its 2060 net-zero target, emphasizing the role of secondary data in shaping low-carbon transitions for resource-rich economies.

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Journal Info

Abbrev

pendipa

Publisher

Subject

Chemistry Education Mathematics

Description

PENDIPA Journal of Science Education is a peer-reviewed, open-access journal covered all aspect of science and science education. PENDIPA journal welcomes the submission of scientific articles related to mathematics, physics, chemistry, biology, and its educational implementation in a school, higher ...