Three Smelters Closed Following RKAB Cutbacks? APNI Explains

CNBC Indonesia - The Indonesian Nickel Miners Association (APNI) has clarified reports claiming that the 2026 nickel production quota reduction in the Rencana Kerja dan Anggaran Biaya (RKAB) would cause three smelters to stop operating. APNI Secretary General Meidy Katrin Lengkey stressed that the information did not come from a direct interview with her, but from a briefing at a discussion forum. Initially, Meidy explained that the government had set the 2026 RKAB nickel quota at around 250-260 million tonnes. The adjustment aims to safeguard long-term sustainability, market stability, and national value addition. According to the International Nickel Study Group (INSG), the global nickel market in 2026 is projected to experience a surplus of about 261 thousand tonnes. Even after the RKAB adjustment to around 250 million tonnes, the market still shows a surplus of about 89 thousand tonnes. “In other words, the policy of reducing production does not create scarcity, but corrects market imbalances to be healthier and more sustainable,” Meidy said in a written statement quoted on Wednesday (4 March 2026). Separately, APNI notes that since the production-control plan was announced in December 2025, world nickel prices have risen significantly from around US$14,800 to US$18,200 per tonne. This indicates a positive market response to supply management policy. “APNI emphasises that Indonesia’s focus is no longer just volume of production, but the governance quality of the industry. Implementation of ESG standards aligned with international standards, the Paris Agreement, the EU’s CBAM mechanism, and Battery Passport become the main priorities,” she said. “Therefore, regarding the issue of the three smelters reported to have shut down due to the policy, Meidy stressed that this statement was never delivered. However, the information she shared in the forum related only to operational conditions of several companies, including: 1) PT Gunbuster Nickel Industry (GNI) performing service or maintenance on five production lines in 2026. 2) PT Huadi Nickel stopping production since late 2025. 3) PT Wanxiang Nickel Indonesia stopping several production lines since late 2025.” The statement is company operational information and not linked as a direct consequence of RKAB policy,” she said.