Smelters Face 90 Million-Tonne Nickel Ore Shortage If 2026 Work Plan Is Cut

Jakarta — The Head of Sustainability at Nickel Industries Limited, Muchtazar, has highlighted significant impacts from proposed cuts to nickel and coal production quotas in Indonesia’s 2026 Work and Budget Plan (RKAB). The nation’s nickel production is set to be reduced by 30 per cent to approximately 260 million tonnes under the revised plan.

Muchtazar warned that such reductions could create a potential shortfall of 70-90 million tonnes of nickel ore, forcing smelters to either import ore to maintain production capacity or reduce operations if imports are not pursued. This supply constraint presents a critical challenge for integrated nickel operators that operate their own processing facilities and smelters.

The reduction in the RKAB directly threatens production levels for nickel developers integrated with smelting operations. Industry stakeholders have expressed concerns about the broader implications of such significant quota cuts on the domestic nickel processing sector and Indonesia’s position in global nickel markets.