Indonesia's Ministry of Energy and Mineral Resources (ESDM) has imposed a 60-day suspension on 190 mining companies through its Directorate General of Minerals and Coal (Ditjen Minerba). Among these, 39 are nickel mining enterprises, distributed as follows: 3 in Maluku Utara, 2 in Sulawesi Selatan, 14 in Sulawesi Tengah, and 20 in Sulawesi Tenggara.
The Indonesian Nickel Mining Association (APNI) has expressed full support for the government's tough administrative measures, stressing that mining operators must comply with regulations and fulfill environmental protection and rehabilitation responsibilities.
According to Mysteel research, the sanctioned nickel miners hold relatively small production quotas. The suspension is estimated to affect only several million wet metric tonnes of nickel ore shipments annually. Given that Indonesia's total approved nickel mining quota for 2025 has reached 360 million tonnes, the overall impact on national nickel supply is expected to be limited. Moreover, Mysteel's survey indicates that among the affected companies, only two possess mining areas exceeding 10,000 hectares.
The Indonesian government has suspended the IUP measures this time. As long as mining enterprises pay the reclamation fees in time and submit rehabilitation plans, they can resume production. However, the move serves as a clear warning to the sector: the Indonesian government may introduce stricter policies regarding IUP issuance and environmental compliance in the near future.
Written by Cora Ji, jiruyan@mysteel.com
