### Indonesia as a Transformation Model: A Multifaceted Inspiration for Africa
In the global natural resources landscape, Indonesia has emerged as a leader in nickel, a breakthrough that is attracting the attention of African countries seeking industrialization. According to a recent report by the American think tank Atlantic Council, published in December 2024, the Indonesian experience could serve as a benchmark for the development of a local mineral processing industry in Africa. However, simply imitating this strategy is complex, given the differences in socio-economic and environmental contexts.
### Indonesian Lessons: Flexibility and Adaptation
Indonesia’s rise in nickel processing is based on a combination of abundant natural resources and astute government policies. With 42% of global reserves, the country has taken the initiative to limit the export of raw nickel. This approach, which began in 2014 and was intensified in 2020, has not only encouraged local investment in the processing sector, but has also enabled a strategy to increase the value of resources.
Between 2019 and 2022, investments in mineral processing infrastructure exploded, from $3.6 billion to $11 billion, leading to the opening of 43 smelters while 28 others are still under construction. However, it is crucial to note that this Indonesian model has its limits. For example, the country has not replicated the same success with other resources such as bauxite and copper, highlighting the need for a nuanced approach.
### A comparative approach: Africa facing industrialization
For African countries, the temptation to reproduce the Indonesian model is strong, especially in a region rich in minerals. However, it is essential to adopt a contextual approach. For example, the extractive market in Africa is often hampered by poor infrastructure and bureaucratic complexities, which do not allow for the fluidity of investment seen in Indonesia. In addition, political instability in some nations could drive away the investors that Indonesia has been able to attract.
South Africa and the Democratic Republic of Congo (DRC) are two countries that could learn from Indonesia’s mistakes and successes. In South Africa, the transition to a greener economy calls for resource transformation to support the battery industry, but challenges of corruption and resource distribution remain. The DRC, meanwhile, has colossal copper reserves, but political uncertainty and armed conflict complicate the development of a profitable processing sector..
### Environmental Issues: A Balance to be Striking
The Indonesian experience also reveals crucial environmental issues. The use of coal-fired power plants to power nickel smelters raises questions about the sustainability of this approach. With growing global concerns about climate change, an adaptation of the Indonesian model will absolutely have to take into account the environmental impact, which could represent an advantage for African countries by promoting innovative and sustainable solutions.
Initiatives such as solar and wind energy, which are beginning to develop in Africa, offer a promising alternative for resource processing. The continent could thus become an example of industrial sustainability, without sacrificing its mineral resources on the altar of immediate profitability.
### Conclusion: Towards a Unique African Strategy
Ultimately, Indonesia’s experience in mineral processing teaches us that industrialization cannot be a copy-and-paste model, but rather a series of adaptable principles. For Africa to embark on this path, it is essential to develop a unique strategy that takes into account local realities, environmental issues and global market dynamics.
The Atlantic Council report highlights that the road to a thriving mineral processing industry in Africa is fraught with pitfalls, but with the right vision and shared commitment from governments, institutions and businesses, a more prosperous future could become a reality. The focus must be on flexibility, innovation and sustainability to transform natural resources into a real lever for sustainable economic development for the continent.