Supply Chain Resilience of Indonesian Nickel Mining Industry: A Causal Loop Analysis

This paper aims to assess the supply chain resilience in the nickel mining industry in Indonesia. Problems arise in the supply chain for the Indonesian mining industry, i.e. the existence of laws regarding the export ban on nickel ore and policies regarding industrial downstream which hamper the process of nickel refined production because it is still unable to carry out downstream activities. When the export ban on nickel ore was imposed, the demand for nickel fell sharply which caused the reference nickel price to fall. Furthermore, carbon emissions resulting from mining and nickel processing can also damage the environment if not handled properly. The supply chain needs to withstand disruption and recover from a disruption quickly. This study utilizes a part of System Dynamics methodology, i.e. Causal Loop Diagram Analysis. The methodology consists of literature review, qualitative model development and expert interviews. The results show a validated causal loop diagram that could become a basis for the dynamic assessment for the systems under scenario.