Nickel downstreaming has become a strategic policy in Indonesia to increase the value added of mineral resources. However, its economic benefits, dependency risks, and sustainability implications have generally been examined separately. This study aims to analyze the interrelationships among these three dimensions through a literature review of 18 Indonesian-language journal articles selected from an initial pool of 53 articles. The findings indicate that nickel downstreaming generates economic benefits, as reflected in the increase in the export value of processed nickel products from US$8.37 billion in 2021 to US$26.12 billion in 2025. Nevertheless, these benefits remain unevenly distributed, while structural dependencies persist in capital ownership, financing, and Indonesia’s position in international trade. Governance challenges and adverse social and environmental impacts further complicate the pursuit of sustainability. The novelty of this study lies in its integrated synthesis of economic benefits, dependency risks, and sustainability, positioning structural dependency as the connecting mechanism among these dimensions. Based on this synthesis, the study proposes several strategies for sustainable nickel downstreaming, including more equitable benefit distribution, stronger domestic industrial capacity and autonomy, consistent regulatory enforcement, and enhanced environmental protection and safeguards for affected communities.
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Riza et al. (2026) studied this question.
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