Production Slashed, Indonesia Still Imports Nickel Ore from This Country

Jakarta, CNBC Indonesia - The Indonesian government has decided to trim nickel ore production this year. Nickel ore production in the 2026 Work Plan and Budget (RKAB) is targeted at ‘only’ 260 million tonnes, down from RKAB 2025’s 379 million tonnes.

Amid this policy to curb production, Indonesia continues to import nickel ore from other countries to meet the supply needs for domestic smelter facilities.

Tri Winarno, Director-General of Minerals and Coal (Dirjen Minerba) at the Ministry of Energy and Mineral Resources (ESDM), said that raw material needs for the smelter industry are currently estimated at 310 million tonnes, higher than the government’s production quota.

The shortfall in supply will likely be bridged through import mechanisms from neighbouring countries. ‘Yes, imports are likely. The Philippines. Yes, there will need to be import licences. But imports have always existed. About 15-20 million tonnes per year,’ Tri said during an interview at the Ministry of Energy and Mineral Resources’ office in Jakarta, quoted on Wednesday (4 March 2026).

The production-cut policy is deliberately aimed at safeguarding the lifespan of national nickel reserves, which currently stand at around 5 billion tonnes. The government does not want to exploit natural resources excessively, which could exhaust reserves in less than 20 years.

Additionally, reducing nickel production is also an effort to control market prices to prevent them from falling due to oversupply.

‘If it continues to be depleted like that, we would be drained continuously and not reach 20 years; it would be finished. So while we are seeking new reserves, we are restraining,’ he added.

Responding to industry concerns about supply availability from the Philippines, which is reportedly tied to long-term contracts with China, the government opened up the possibility of alternative solutions.

The Ministry of Energy and Mineral Resources does not close the door to a mid-year revision of the production quota if it is urgent and in line with the applicable regulations. ‘There is a possibility of revision. If there is a possibility of revision, yes, there is. After all, regulations exist. It will be adjusted,’ he concluded.

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