Nickel investors on edge as Indonesia tightens the screws on smelters

[JAKARTA] Nickel-rich Indonesia’s industrial ambitions have run into rough currents again, as the government tightens rules on new smelter developments.

The new regulation threatens to upend multibillion-dollar investments tied to the world’s largest nickel reserves and South-east Asia’s biggest economy.

The stricter rules, aimed at pushing the sector deeper into downstream manufacturing, introduce a fresh layer of uncertainty for companies already navigating a weak price cycle, supply glut, and policy environment that analysts say is testing investor patience.