Nickel ore supply certainty key to downstreaming success: INDEF

Jakarta (ANTARA) - The Institute for Development of Economics and Finance (INDEF) has stated that certainty of nickel ore supply will be the key to sustaining downstreaming, ensuring that smelter operations continue running amid rising raw material needs of the processing industry.

“The government’s move to relax nickel production quotas is considered an important correction to maintain the sustainability of the national downstreaming programme,” said Andry Satrio Nugroho, Head of the Centre for Industry, Trade and Investment at INDEF, in Jakarta on Monday.

According to him, the government, through the Directorate General of Minerals and Coal (Ditjen Minerba), stated that quota adjustments would only be granted to companies applying the principles of good corporate governance (GCG) and good mining practice (GMP), and complying with all applicable regulations and policies.

He said the quota relaxation is a consequence of the imbalance between efforts to support nickel prices and the need to supply raw materials for downstream industries.

He noted that the problem is that quotas are being held back to lift prices, while at the same time ore supply must be increased so that smelters keep running.

“These two objectives are difficult to achieve simultaneously through quota regulation alone,” he said.

He explained that the nickel ore needed to supply smelters in 2026 is estimated to reach 340 million to 360 million tonnes.