Nickel Ore Production Target Has Not Yet Met Indonesia's Smelter Demand

Jakarta – The 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 domestic demand from the mining and refining industry, or smelters.

Director-General of Mineral and Coal (Dirjen Minerba) Tri Winarno said the quota for nickel ore production in this year’s RKAB is set at around 260 million tonnes, while the demand from the industry for smelters is 310 million tonnes.

Tri explained that the shortfall in nickel ore supply to smelters will most likely be met through imports from neighbouring countries.

“310 (million tonnes). Yes, possibly imports. (From) the Philippines. Yes, there will surely be (import) licences. But so far there have been licences. Imports have always existed. About 15-20 (million tonnes),” Tri said during a visit to the ESDM Ministry offices in Jakarta, on Wednesday (4/3/2026).

However, he said the government is also open to adjusting the production quota via RKAB revision mechanism in the second half of the year, in line with applicable regulations and industry needs.

“There is a chance for a revision, yes there is. Well, there are regulations. That will be adjusted,” he added.

The policy restricting production was taken to maintain national nickel reserves, which are currently around 5 billion tonnes.

Tri emphasised that controlling the pace of production is necessary so that these natural resources are not depleted quickly, while also maintaining price stability in the global market.

“If it continues to be depleted at this rate, we will be drained little by little and we won’t reach even 20 years; it’s finished. While we search for new reserves, we also slow down,” he concluded.