The Indonesian government has announced plans to regulate nickel production in 2026, amid concerns over oversupply.
Tri Winarno, Director General of ESDM, said that nickel production quotas under the 2026 Work Plan and Budget (RKAB) will be set below this year's target of 3.19 billion tonnes. He noted that currently only about seven nickel companies in Indonesia operate integrated mining and smelting operations, with a limited number holding nickel smelting business licenses (IUP).
Notably, while the government considered significantly cutting nickel mining quotas in December last year to support prices, the final approved quotas were not substantially tightened. The actual impact of the 2026 production adjustment will therefore depend on the final RKAB approvals.
Additionally, the Ministry of Energy and Mineral Resources (ESDM) said it would support the Ministry of Industry in restricting the issuance of investment permits and Industrial Business Licenses (IUI) for new smelters. Tri also expressed support for limiting new permits for intermediate-product nickel smelters, emphasizing the government's focus on encouraging downstream development into higher value-added products.
Written by Cora Ji, jiruyan@mysteel.com
