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Commodities

Indonesia nickel concerns stoked by corruption and land disputes

Bribery charges highlight challenge of regulating lucrative sector

Demand for nickel has been rising due to its use as a key ingredient in hybrid and electric vehicle batteries. But the nickel sector in Indonesia, the world's largest producer of the metal, has been overshadowed by corruption.   © Reuters

JAKARTA -- Corruption and land disputes are quickly becoming a major concern in Indonesia's nickel sector, as local players grow increasingly aggressive with smelter projects and more international companies look to enter the country.

Indonesia is the world's largest producer of the metal, a key component in electric and hybrid vehicle batteries. The country, which boasts a young and growing population, has been actively aiming to draw foreign investment and leverage that resource dominance to develop its own capacity to produce such high-tech components.

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