Nickel has eclipsed coal as Indonesia’s biggest export earner for the first time, according to Macquarie Group Ltd., a sign of the country’s growing dominance in the supply of the battery metal.

Earnings from overseas sales of nickel products were $16.5 billion in the first half of the year, analysts including Jim Lennon wrote in a note dated Aug 12. That compares with $14.4 billion for coal, they said.

The milestone signals the growing importance of nickel to Indonesia’s economy following a ban on the export of ore in 2020. That led to a rapid build-out of domestic smelters, largely by Chinese companies, which saw the Southeast Asian country take control of about 60% of global supply.

The metal now accounts for 12% of Indonesia’s export earnings, according to Macquarie, driven by higher volumes that have offset languishing prices. Nickel in London has dropped around 30% since a peak in June 2024.

The nation’s coal industry has suffered from lower prices due to oversupply of the fossil fuel. Growing domestic production and the roll-out of renewable energy in China and India have undercut demand for Indonesia’s exports. (By Eddie Spence)