Indonesia to Cut Nickel Production, ESDM: If Exploited Continuously for 20 Years It Will Be Exhausted

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has emphasised that it will cut domestic nickel production through the approval of the Work Plan and Budget (RKAB) for 2026. Director General of Minerals and Coal (Dirjen Minerba) at the ESDM, Tri Winarno, outlined that the nickel production target in this year’s RKAB is around 260 million tonnes. If nickel exploitation continues on a massive and ongoing basis, the government fears the remaining nickel reserves will not suffice for future generations. ‘If we keep draining it like that, we won’t last 20 years; it will be finished. So while seeking new reserves, we are also throttling back. Incidentally, 65% of global production comes from us,’ Tri said when he was met at the ESDM Office in Jakarta, on Wednesday (4 March 2026). The ESDM notes that 65% of global nickel production comes from Indonesia. This should strengthen Indonesia’s bargaining position in global markets regarding price. Thus, the move to trim Indonesia’s nickel production is expected to raise nickel prices. Indeed, nickel prices have risen from around US$14,000 to about US$17,000. To compensate for the cut in domestic nickel production, part of industry demand will be met via nickel imports from the Philippines. ‘Therefore we are trying to exercise control. We own the product but we cannot do anything about it, can we? Oh, it turns out there was an oversupply of around 250,000 tonnes. So we are striving to move in that direction,’ he added. Tri also compared Indonesia’s strategy with other countries such as China, which tends to hold its own nickel reserves and does not mine aggressively. ‘Now this is the situation: China does not mine nickel. Meanwhile, if we keep mining continuously and then there is nothing left when prices are high, what will we do? What natural resources do we have that could substitute for our revenue?’ he concluded.