The government is exploring the option of a moratorium or restriction\non the construction of nickel smelting and processing facilities that\ncontinue to produce only semi-finished products. This consideration\ncomes in light of the global nickel oversupply, which has led to a sharp\ndecline in world nickel prices.<\/p>\n
Bahlil Lahadalia, the Coordinating Minister for Downstreaming and\nEnergy Transition, as well as the Minister of Energy and Mineral\nResources, revealed that most nickel smelters currently operating are\nlimited to producing semi-finished materials at a rate of approximately\n50-60%. He noted that current supply levels have exceeded market demand\nby up to 2.5 million tonnes, directly impacting the drop in nickel\nprices on the international market.<\/p>\n
\u201cThis is an oversupply, which is why prices are falling. We may\nconsider minimising industries that produce semi-finished goods, or\nperhaps even implementing a moratorium, while we push for industries\nthat produce direct downstream products,\u201d he stated during the Investor\nDaily Summit 2026 in Jakarta.<\/p>\n
Bahlil emphasised that the government will regulate national\nproduction volumes to ensure that Indonesia\u2019s mining commodities are not\nsold cheaply while the market is saturated. Although theoretical\ninstalled smelter capacity is high, real operational levels in the field\nwill be adjusted in a measurable manner according to global supply and\ndemand dynamics.<\/p>\n
\u201cEven if the installed capacity is, for example, 10, the actual\nproduction might not reach 10 as long as oversupply persists. That is\nwhat we will regulate. If we continue to follow smelter demand, our\nprices will certainly fall,\u201d he added.<\/p>\n
In addition to maintaining price stability and optimising state\nrevenue, this production control is also aimed at ensuring the\nsustainability of national natural resources. Bahlil reminded that\nmineral commodities such as nickel are finite and cannot regenerate like\nthe agricultural or plantation sectors.<\/p>\n
\u201cIf prices are plummeting, we should not flood the market, otherwise\nour goods will be cheap. We do not want our goods to be sold cheaply.\nUnlike agriculture, nickel and coal, once extracted, cannot regrow.\nTherefore, please help us ensure this is sustainable for the future of\nthe nation,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bahlil-considers-nickel-smelter-moratorium-here-is-the-reason-1791431666", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }