Indonesia is a country rich in natural resources, one of which is nickel. Downstreaming is a strategic step by the Indonesian government to add value and increase the value of nickel. Downstreaming practices provide a source of competitive advantage from a strategic management perspective. The study’s results show that the Indonesian government is unprepared to implement nickel downstreaming practices, which are characterized by foreign countries dominance in smelter ownership. The study’s findings also reveal that the Indonesian government’s managerial ability to manage the nickel industry is not yet optimal, which has an impact on nickel oversupply and declining nickel prices due to environmental damage.