ESDM States No Additional Nickel Production Quota
The Ministry of Energy and Mineral Resources (ESDM) has stated that there will be no additional nickel production quota, except to meet the needs of smelters that are still experiencing a shortage of supply.
“For nickel, there is no increase, except only to catch up for smelters that are still lacking supply,” said Director General of Mineral and Coal at the Ministry of ESDM, Tri Winarno, at the Ministry of ESDM office in Jakarta on Friday.
Tri conveyed that the addition of nickel production quotas to meet smelter needs would not be too significant. The purpose of this policy is to prevent an oversupply in the international market, which is feared could cause the price of the nickel commodity to plummet.
Nevertheless, Tri invited mining entrepreneurs to submit revisions to their Work Plan and Budget (RKAB) until 31 July 2026. “Please, go ahead and submit (the RKAB revision),” said Tri.
The decision responds to growing market speculation regarding a possible total change in the nickel RKAB after the revision period scheduled for July. However, the government stressed that all incoming proposals must still undergo a review process before a decision is made.
According to Minister of ESDM Regulation Number 17 of 2025, business entities may submit changes to the RKAB after submitting periodic reports up to the second quarter or no later than 31 July of the current year. However, the submission of an RKAB change is not automatically approved.
The nickel production quota set by the Ministry of ESDM for 2026 has been reduced to 250–260 million tonnes, compared to the 2025 RKAB of 379 million tonnes. The cut is based on the imbalance between supply and demand for coal and nickel in the international market, particularly throughout 2025.
Since Indonesia announced it would control nickel production on 23 December 2025, Tri stated that nickel prices on the world market immediately experienced an increase. Tri expressed hope that the production controls implemented by the Ministry of ESDM can prevent a nickel oversupply, allowing the price of the mining commodity to improve.