Indonesia's Ministry of Energy and Mineral Resources (ESDM) has recently confirmed that it has set the nickel production target for 2026 at approximately 250 to 260 million tonnes in its Work Plan and Budget (RKAB) for the year. This figure is lower than the 379 million tonne target set in the 2025 RKAB.
Tri Winarno, Director General of Minerals and Coal at the ministry, stated that the quota reduction is primarily aimed at aligning with the capacity requirements of Indonesia's domestic processing and smelting industries. Nickel production will be adjusted based on the production capacity of these smelters, likely within the range of 250 to 260 million tonnes.
Tri acknowledged that the policy to cut nickel production is one of the strategies to support nickel prices. Following the announcement of this policy, global nickel prices once surged to US $18,000/tonne.
Furthermore, he noted that the approval process for the 2026 RKAB is still ongoing, running concurrently with new application procedures. The overall progress is smooth, and existing RKAB quotas can continue to be used until March.
Minister of Energy and Mineral Resources Bahlil Lahadalia previously emphasized that regulating nickel production is a key measure to ensure that ore supply matches domestic smelting demand, aiming to maintain market fairness and rational resource allocation.
Additionally, the government requires large nickel smelters to source raw materials from suppliers holding local mining permits to prevent supply chain monopolies and support the stable development of the regional mining industry.
Written by Cora Ji, jiruyan@mysteel.com
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