Indonesia limits nickel quota expansion to support global prices

Jakarta (ANTARA) - Indonesia’s Energy and Mineral Resources (ESDM) Ministry announced on Friday that it will not grant any comprehensive additions to the national nickel production quota.

The move is part of a deliberate strategy to shield global commodity prices from collapsing due to oversupply, though exceptions will be carved out strictly for domestic smelters facing immediate raw material deficits.

"There will be no increase for nickel, except to catch up on smelters that are still short of supply," the ministry’s Director General of Minerals and Coal Tri Winarno said in Jakarta.

He stated that any quota increases authorized to stabilize raw material supply for domestic smelters will not be significant.

The primary objective of the stringent policy is to prevent market oversupply, which could trigger a downward spiral in global nickel commodity prices.

Despite the firm stance, Tri encouraged eligible mining companies to submit any pending revisions to their Work Plan and Budget (RKAB) before the July 31, 2026, deadline.

The government's decision addresses mounting market speculation over whether a sweeping revision of nickel RKABs would be permitted following the mid-year evaluation period.

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Officials emphasized that all newly submitted proposals must undergo a rigorous regulatory review process before securing final approval.

Under the ESDM Ministerial Regulation Number 17 of 2025, business entities may apply for RKAB adjustments after submitting their second-quarter periodic reports, up until July 31 of the current year.

However, the ministry stressed that revisions are not automatically approved.

Reflecting a tightening regulatory grip, the ministry has capped the national nickel production quota for 2026 at 250 million to 260 million tons. The figure represents a substantial drop from the 379 million tons allocated under the 2025 RKAB framework.

The dramatic scale-back was prompted by severe supply-and-demand imbalances that disrupted both the coal and nickel international markets throughout 2025.

Since Indonesia first declared its intent to strictly regulate national nickel output in December 2025, world market prices immediately registered an upward trend.

The ministry hopes that maintained production controls will continue to curb oversupply and steadily improve the commodity's global trading value.

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Translator: Putu Indah Savitri, Yashinta Difa

Editor: Martha Herlinawati Simanjuntak

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