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Jakarta – Indonesia is asserting greater control over its vast nickel reserves, a crucial component in the production of electric vehicle (EV) batteries, as the United States and China intensify their competition to secure access to this critical mineral. The move reflects a broader trend of resource nationalism and a strategic effort by Indonesia to maximize the economic benefits from its natural wealth, potentially reshaping global supply chains for the burgeoning EV industry.

Nickel is a key ingredient in lithium-ion batteries, and Indonesia holds the world’s largest proven reserves of the metal, estimated at around 21 million metric tons as of 2023 according to Reuters. This abundance has attracted significant investment from both the US and China, but Jakarta is now seeking to move beyond simply exporting raw materials and instead capture more value through domestic processing and manufacturing. The tightening of controls comes amid a recent tax cut designed to boost electric vehicle sales within Indonesia, further incentivizing the development of a local EV ecosystem.

Indonesia’s Strategy: From Raw Exports to Value-Added Processing

For years, Indonesia exported most of its nickel ore to China, where it was processed into nickel pig iron and other intermediate products. However, the Indonesian government, under President Joko Widodo, has implemented a series of policies aimed at compelling companies to invest in domestic smelting and refining facilities. A 2020 ban on nickel ore exports was a pivotal moment, forcing smelters in China to either invest in Indonesia or uncover alternative sources. This policy has spurred a surge in foreign investment, particularly from Chinese companies, but also attracted attention from the US, which views Indonesia as a key partner in diversifying its supply chains.

The latest move involves stricter regulations on nickel mining permits and increased scrutiny of foreign investment in the sector. While details are still emerging, the government has signaled its intention to prioritize projects that contribute to the development of a fully integrated EV battery industry within Indonesia. This includes encouraging the production of nickel sulfate, a key precursor material for battery cathodes, and attracting investment in cathode and battery manufacturing plants.

US and China Vie for Influence in Indonesia’s EV Sector

The United States is actively seeking to counter China’s dominance in the EV battery supply chain, and Indonesia is central to this strategy. In December 2023, the US government signed a memorandum of understanding (MOU) with Indonesia to collaborate on developing EV battery materials and processing facilities as reported by Reuters. This MOU aims to mobilize up to $700 million in US investment to support Indonesian projects. The US International Development Finance Corporation (DFC) is expected to play a key role in providing financing for these initiatives.

China, however, remains the dominant player in Indonesia’s nickel processing industry. Chinese companies have invested billions of dollars in nickel smelters and stainless steel plants across Indonesia, and continue to seek opportunities to expand their presence. Wuling Motors, a Chinese automobile manufacturer, has been actively involved in promoting electric vehicle adoption in Indonesia, including a recent joint trial of its Mitra EV model with TransJakarta to encourage green mobility according to VOI.id. A motor show in Jakarta in February showcased several Chinese EV brands, highlighting their growing footprint in the Indonesian market.

Wuling’s Role and the Broader Automotive Landscape

Wuling Motors Indonesia has been a prominent player in the Indonesian automotive market, recently concluding a successful Bali-Jakarta journey with its Darion vehicle and national media as reported by Wuling Motors Indonesia. The company is also exploring opportunities in the electric commercial vehicle market, recently unveiling a new vehicle aimed at the logistics sector according to the Jakarta Globe. Hyundai is also benefiting from the Indonesian tax cuts, experiencing increased electric car sales.

What to Watch Next

The Indonesian government is expected to announce further details on its nickel investment regulations in the coming months. The success of the US-Indonesia partnership will depend on the timely deployment of funding and the ability to attract significant private sector investment. China is likely to continue to be a major player in Indonesia’s nickel industry, and the competition between the two superpowers will likely intensify as Indonesia seeks to maximize its economic benefits. The Wuling Cloud EV is also slated to be featured at the Indonesia International Sustainability Forum 2025 according to Wuling Motors Indonesia, signaling the continued importance of EVs in Indonesia’s sustainability agenda.

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A wave of international criticism is building against Israel following its recent approval of a measure to register land in the occupied West Bank as “state property.” Nearly 100 states and three major political blocs have voiced opposition, characterizing the move as a significant step towards annexation of Palestinian territory. The decision, approved late Sunday, has ignited concerns about escalating tensions and the future of the Israeli-Palestinian conflict.

The Israeli government maintains the land registration process is intended to clarify ownership rights and resolve legal disputes, particularly those stemming from what it describes as unlawful land registration within areas controlled by the Palestinian Authority. However, this explanation has failed to quell widespread condemnation from Arab nations and international observers, who view the action as a deliberate attempt to solidify Israeli control over the West Bank. The move is seen as a continuation of policies aimed at altering the demographic and legal status of the occupied territories.

Arab Nations Lead Condemnation

Egypt, Qatar, and Jordan were among the first to publicly denounce the measure, labeling it a violation of international law. The Egyptian government issued a statement calling it a “dangerous escalation aimed at consolidating Israeli control over the occupied Palestinian territories.” CBS News reports that Qatar’s foreign ministry condemned the “decision to convert West Bank lands into so-called ‘state property’,” arguing it would “deprive the Palestinian people of their rights.” Jordan’s foreign ministry similarly condemned the actions, stating they “constitute a blatant violation of international law and international humanitarian law” and would obstruct the establishment of an independent Palestinian state.

The condemnation extends beyond these three nations, with Dawn reporting that nearly 100 states and three blocs have issued statements opposing the move. This broad international opposition underscores the deep concern over Israel’s policies in the West Bank and the potential for further instability in the region.

Historical Context of West Bank Annexation Efforts

Efforts to annex the West Bank have a long history, dating back to the 1967 Six-Day War. The Union of Islamic Cooperation details a timeline of these attempts, beginning with the 1967 Allon Plan, which proposed annexing significant portions of the Jordan Valley, East Jerusalem, and surrounding settlements. More recently, in September 2019, Israeli Prime Minister Benjamin Netanyahu announced plans for annexation of the Jordan Valley, though these plans were later paused due to pressure from the United States and the United Arab Emirates.

The current land registration measure is viewed by critics as a continuation of this “creeping annexation,” a process of gradually extending Israeli control over Palestinian territory through legal and administrative means. This includes applying Israeli law to settlements throughout the West Bank, creating a dual legal system and further complicating the prospects for a two-state solution. According to Wikipedia, the annexation of East Jerusalem was the first part of the West Bank to be annexed, occurring de facto in 1967 and de jure in 1980.

Legislative Moves and Broad Consensus

Recent legislative efforts in the Israeli Knesset further demonstrate a growing consensus on the principle of annexation. In October 2025, the Knesset approved, in a preliminary reading, a bill to impose “Israeli sovereignty” over the entire occupied West Bank, initiated by Knesset member Avi Maoz of the far-right “Noam” bloc. Simultaneously, another bill to annex the Ma’ale Adumim settlement east of Jerusalem received support from both the coalition and opposition parties, indicating a broad agreement on annexation despite disagreements over timing, and methods.

The current land registration proposal builds on these legislative attempts, aiming to solidify Israeli claims to land in the West Bank. Even as Israeli officials present it as a technical measure to resolve land disputes, the international community largely views it as a deliberate step towards de facto annexation, further eroding the possibility of a negotiated two-state solution.

The situation remains highly volatile, and the international community is closely monitoring developments in the West Bank. Further legislative action by the Israeli government, coupled with continued settlement expansion, could lead to increased tensions and further undermine the prospects for peace. The next steps will likely involve continued diplomatic pressure on Israel and further scrutiny of its policies in the occupied territories.

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