Experts Take Deep Dive into New Directions in Metals & Mining Industry at 4th DBS Metal and Mining Forum, Here are the 5 Highlights | Bahasa

Indonesia, 03 Dec 2025 - Amid global economic volatility and the ever-changing dynamics in the metals and minerals sector, discussion forums play an important role in bringing together industry leaders and decision makers to discuss opportunities, challenges, and the latest trends. As a trusted partner, Bank DBS presented The 4th DBS Metal and Mining Forum with the theme “Forging Global Connections”, which emphasises the increasingly important role of international collaboration and innovation in driving sustainable growth. Through this forum, Bank DBS hoped to enhance strategic insights, strengthen cross-border partnerships, and boost foreign investment inflows to Indonesia.

“Indonesia's strategic position and natural resource abundance place it at the center of the future of the metals and minerals industry. Through downstream development and enhanced value addition, Indonesia can transform itself from a mere exporter of raw materials into a major player in the global supply chain for critical minerals. Bank DBS is committed to being a trusted partner every step of the way, not only through financial solutions but also through relevant insights and support so that businesses can continue to grow,” said President Director PT Bank DBS Indonesia Lim Chu Chong.

To gain a more comprehensive overview of developments in the metals and minerals industry, take a look at the key takeaways from expert insights.

1. Foreign Capital Flows Decline Amid Global Uncertaint
The global economy is experiencing a slowdown across multiple regions, including China and Europe. The shift in supply chains due to new US tariff policies has also put pressure on global trade volumes and triggered corrections in energy and non-energy commodity prices. This combination of factors has caused a sharp decline in foreign direct investment (FDI). The pressure stemmed from multiple factors, from tensions between the US and China, tariff wars, climate change, to developments in artificial intelligence (AI). This interplay between economic and political dynamics makes global conditions increasingly hard to predict.

For developing countries, the decline in FDI poses a major challenge as it hinders efforts to achieve a more ambitious gross domestic product (GDP) growth target. This situation is particularly evident in Indonesia, given that investment flows from China, one of the largest contributors, are also weakening. This situation is expected to put pressure on expansion in the metals and mining sector, notably in the downstream nickel industry.

2. Indonesia’s Nickel Remains Dominant in the Global Market
Nickel has become a strategic global commodity due to the growing demand for electric vehicle batteries and eco-friendly technologies. Indonesia stands out as a key producer, with production capacity reaching 2.2 million tonnes in 2024, equivalent to more than 50 percent of global supply. This position confirms Indonesia's advantage over other ASEAN countries.

On top of that, Indonesia has the most complete battery component ecosystem outside of China, with the capacity of a number of production lines even surpassing South Korea and Japan. The growth of the domestic electric vehicle (EV) industry is also driving demand, as manufacturers are expanding their manufacturing capacity. With efficient regulations and investment certainty, Indonesia has a great opportunity to become a regional center for EV battery production and innovation.

3. Downstreaming: A New Direction for the Metals and Mining Industry
Indonesia, the Philippines, Malaysia, and Vietnam each hold distinct mineral advantages. The main challenge is not the availability of resources but the capability to develop the upstream and downstream industries so that added value is created domestically. The Ministry of Energy and Mineral Resources (ESDM) believes that downstreaming is a core pillar of the government's Asta Cita agenda. The policy is considered crucial in achieving energy independence and strengthening national sovereignty while also promoting more inclusive economic growth, creating quality jobs, and expanding social justice.

Managing Director, Global Head of Metals and Mining, DBS Bank Ltd Mike Zhang said, “Critical minerals are considered vital to national sovereignty. However, smelting capacity is also very important, because without the capability to process minerals into metals this potential cannot be realised.”

Through critical mineral processing and value-added policies, Indonesia is shifting from an exporter of raw materials to an important player in the global critical minerals supply chain. One of the most obvious examples is the nickel downstreaming. The export value, which was around USD3.3 billion in 2017-2018, increased significantly to nearly USD40 billion in 2024. This increase has not only strengthened state revenues but also helped to significantly narrow the trade deficit. Therefore, a solid flow of investment is still needed to optimise downstreaming and increase the added value of minerals.

4. Fragmented Metal Prices, a New Challenge for Global Industry
The global economic dynamics are becoming increasingly complex. Commodity and metal price movements are heavily influenced by US dollar fluctuations, given that the majority of metal trading is conducted in US dollars. The risk of US dollar depreciation has the potential to drive up metal prices while a slowdown in decarbonisation in a number of countries, including several European nations, is also affecting demand for clean energy and the transition to electric vehicles. These factors are making the metal market increasingly fragmented and hard to predict.

The situation is exacerbated by the concentration of critical mineral supplies in a limited number of countries. As a result, metals, including copper, no longer share uniform prices worldwide but vary between countries and regions. This phenomenon marked a shift from a purely globalised economy to a geopolitical economy, in which countries are increasingly using economic policies as tools to achieve political goals, with a growing trend toward nationalisation, regionalisation, and protectionism.

5. Energy Transition Targets Are Becoming More Ambitious, Mining Industry Must Be Ready to Adapt
Energy transition is an important aspect in the metals and mining industry, especially in the search for environmentally friendly alternative energy sources. The shift from heavy dependence on fossil fuels to green energy is a strategic step to ensure that every industrial process is more sustainable. This step is in line with the government's agenda to increase the share of New and Renewable Energy (EBT) in the national energy mix so the mining industry needs to align with this target.

At the same time, the shift towards clean energy is occurring concurrent with domestic policy adjustments, including the implementation of a progressive royalty scheme and the renewal of licensing and export management mechanisms. This has driven companies to adapt to the shift by reorganising their operational strategies and ensuring compliance with dynamic regulations.

“Alternative energy sources are also a very important aspect of this transition. Amid these efforts, it is important to ensure that the energy transition is as clean and environmentally friendly as possible. This process marks a shift from heavy dependence on fossil fuels to the use of greener energy sources,” said Senior Economist DBS Bank Radhika Rao.

With a combination of cross-border capabilities, sectoral expertise, a track record of financing large projects, and a strong regional network, Bank DBS continues to strengthen its position as a strategic partner for Indonesia's metals and minerals industry. In line with the national priority to accelerate downstreaming and attract more global investment, Bank DBS is committed to providing relevant solutions, extensive market connectivity, and trusted advisory services for all stakeholders. Going forward, Bank DBS will continue to support the transformation of this sector so that it can provide greater added value to the Indonesian economy while playing an important role in the global supply chain.

For more information on Bank DBS's role as a trusted partner in driving business growth, including in the mining sector, visit this page and Instagram @dbsbankid.

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