Nickel RKAB Relaxed, Smelters Assured of No Supply Shortage
The Ministry of Energy and Mineral Resources (ESDM) is opening room for additional nickel ore production targets to be set in the revision of the Work Plan and Budget (RKAB). This follows concerns from nickel processing and refining facility (smelter) operators about a shortage of nickel ore supply due to production target cuts in this year’s RKAB.
Director General of Minerals and Coal at the ESDM Ministry, Tri Winarno, confirmed that although the government is opening the potential for additional nickel RKAB this year, the increase will not be significant. As is known, the nickel RKAB for 2026 is set in the range of 260-270 million tonnes per year.
“I want to explain, there is no increase in nickel production except only to catch up for smelters that are still lacking supply. That’s it,” he said when met at the ESDM Ministry Office in Jakarta on Friday (10/7/2026).
Tri stressed there must be a balance between mine production capacity and the real needs of refineries. He emphasised that the granting of production quotas in the RKAB revision is carried out selectively to close the gap in raw material shortages for smelters that still need supply.
“We are still looking at what the total needs of the smelters are, then what the previously approved RKAB was, and then later we will just add a little,” he asserted.
The quota adjustment covers both limonite and saprolite nickel ore types, depending on the specifications of each company’s smelter. Tri emphasised that the government will not grant a volume increase that is too significant to prevent a price drop due to excess supply.
“The numbers are not clear yet, but the point is only to catch up on that, but we must not hold back, the main thing is there must be no oversupply. That’s it,” he added.
His party noted that business operators still have the opportunity to submit revisions or additional production quotas until 31 July 2026. All applications will be evaluated to ensure downstreaming objectives are achieved optimally.
“If submitting, July at the latest, 31 July, but regarding how much and so on, whether it is approved depends on the evaluation later,” he concluded.
In accordance with ESDM Ministerial Regulation Number 17 of 2025, business entities can indeed submit RKAB changes after submitting periodic reports up to the second quarter or no later than 31 July of the current year. However, the submission of RKAB changes is not automatically approved.
The government continues to strive to maintain a balance between the interests of the upstream and downstream sectors. Miners need room to continue operating and running their investments, while the processing and refining industry requires an adequate supply of raw materials so that downstreaming activities continue.
At the same time, the government also needs to ensure production does not grow excessively. Overly high production risks depressing commodity prices, accelerating reserve depletion, and reducing the effectiveness of national mining governance.