AJARCDE (Asian Journal of Applied Research for Community Development and Empowerment)
Vol. 10 No. 1 (2026)

Techno-Economic Feasibility of SME-based Nickel Slag Valorization in Supporting Circular Industrial Development in Indonesia

Hasibuan, Sawarni (Unknown)
Thaheer, H (Unknown)
Purba, HH (Unknown)



Article Info

Publish Date
26 Feb 2026

Abstract

Indonesia’s rapid growth in nickel processing has led to a significant increase in nickel slag from pyrometallurgical operations. While slag buildup creates environmental and land-use problems, using it in downstream production by small- and medium-sized enterprises (SMEs) has not been studied much. This study examines the technical and financial feasibility of producing paving blocks from nickel slag in a semi-mechanical SME production system. The process uses 85% slag, 10% fly ash, and 5% cement, with a planned capacity of 1,800,000 units per year. The technical review covers material processing steps, equipment details, and steady-state operating capacity. Financial analysis is done over 10 years with a 10% discount rate and standard capital budgeting methods. The total investment needed is IDR 2.16 billion. Results show strong financial performance, with a Net Present Value (NPV) of IDR 4.13 billion, an Internal Rate of Return (IRR) of 25.40%, a Benefit–Cost ratio of 2.91, and a payback period of 30.84 months. The break-even point is 279,886 units, or 21.53% of capacity, showing the system can handle moderate market stress. These results show that the use of SME-based slag is both technically feasible and economically sound, supporting small-scale industrial cooperation and offering a practical way to promote circular integration in Indonesia’s nickel industry. Contribution to Sustainable Development Goals (SDGs):SDG 9: Industry, Innovation and InfrastructureSDG 12: Responsible Consumption and ProductionSDG 8: Decent Work and Economic GrowthSDG 13: Climate Action

Copyrights © 2026






Journal Info

Abbrev

ajarcde

Publisher

Subject

Agriculture, Biological Sciences & Forestry Earth & Planetary Sciences Education Energy Environmental Science

Description

AJARCDE (Asian Journal of Applied Research for Community Development and Empowerment) publishes papers on innovative applications, development of new technologies, and efficient solutions in agriculture, engineering, computing, economic, social, information technology, food, energy, and scientific ...