Indonesia's Ministry of Energy and Mineral Resources (ESDM) has acknowledged a gap between the national nickel ore production target set in this year's Work Plan and Budget (RKAB) and the total demand from the domestic processing and refining industry (smelters).
Tri Winarno, Director General of Minerals and Coal, revealed that the 2026 RKAB sets a nickel ore production quota of approximately 260 million tonnes, while total smelter demand for the same period reaches 310 million tonnes.
Tri indicated that this shortfall will likely be covered by imports, primarily from neighboring Philippines, with estimated import volumes ranging from 15 million to 20 million tonnes. He emphasized that imports require appropriate permits and such trade has been ongoing.
Meanwhile, the government does not rule out adjusting production quotas through the RKAB revision mechanism in the second half of the year to align with current industry needs and regulatory requirements. Tri noted that relevant regulations are already in place and adjustments will be made based on actual conditions.
The production limit is aimed at maintaining the stability of the country's nickel reserves. Currently, Indonesia's nickel reserves stand at approximately 5 billion tonnes. Tri stated that without controlling the extraction rate, resources could be depleted within 20 years. Therefore, while searching for new reserves, it is necessary to "apply the brakes" to prevent resource depletion too quickly and stabilize global market prices.
Written by Cora Ji, jiruyan@mysteel.com
