Indonesia’s foreign policy in the nickel industry amidst US-China rivalry in clean energy investments

The growing concern about climate change has propelled clean energy investment to accommodate the energy transition. The shift manifests itself not only in emissions emitted but also in the transformation from fuel-intensive to material-intensive. One of the mineral resources needed in clean technology is nickel, which has crucial roles in EV batteries and renewable energy storage. This can serve as bargaining power for a country with the biggest nickel reserves and the largest nickel production, namely Indonesia. With its adherence to “free and active” foreign policy, Indonesia is labeled as one of the global swing states that possess mixed political orientations in the superpower rivalry. This paper critically analyzes recent developments in Indonesia’s foreign policy to advance its nickel industry by taking advantage of the US-China contestation, especially in the race to the energy transition. In order to map related opportunities and threats ahead, the paper uses qualitative methods of literature review. The paper argues that the balancing act starts domestically in Indonesia in order to attract foreign investments from both sides of the coin with ethical implementations.