Nickel Price Strengthens to US$17,000, ESDM Claims Effect of Production Quota Cut

The Ministry of Energy and Mineral Resources (ESDM) reports that nickel prices have begun to stabilise around US$17,000 per tonne. This price stability occurred after Indonesia cut its nickel production quota.

The Director General of Mineral and Coal (Dirjen Minerba) of the Ministry of ESDM, Tri Winarno, stated that prices had previously risen higher before stabilising.

“Prices once reached US$18,600 per tonne, then stabilised at around 17 thousand. Now it’s about US$17,200–17,400 (per tonne),” said Tri at the “Unlocking Growth in The Middle Income Trap” event in Jakarta on Tuesday (7/4/2026).

Tri explained that the situation was triggered by an excess supply in the global market. The oversupply volume is estimated to reach 200,000 to 250,000 tonnes.

“That’s the reason why nickel prices in the world have not increased, stagnating at US$14,000–15,000 per tonne,” said Tri.

The government then announced plans to control nickel production on 23 December 2025. The market immediately responded to this policy.

Global nickel prices began to rise following the announcement.

Tri assessed that production control is important to maintain market balance. This step is expected to curb excess supply and encourage better prices.

“65 percent of the world’s nickel supply comes from Indonesia. That’s why we are trying to make Indonesia a price-determining player,” said Tri.

The production quota set for 2026 is at the level of 250 million to 260 million tonnes. This figure is down from the 2025 Work Plan and Budget (RKAB) of 379 million tonnes.

The quota reduction was carried out to respond to global market imbalances. This condition occurred in coal and nickel commodities throughout 2025.