Video: Indonesia's Nickel Production Cut in 2026, Benefit for Foreign Producers?

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has cut nickel ore production in the 2026 Work Plan and Budget (RKAB) to around 260 million tonnes, down 31% from the 2025 RKAB of 379 million tonnes.

Chairman of the Indonesian Nickel Industry Forum (FINI), Arif Perdana Kusumah, stated that the reduction to 260 million tonnes is far below the estimated needs of the downstream/smelter sector, projected at 340-350 million tonnes in 2026.

Nevertheless, FINI appreciates the production cut for nickel ore to curb oversupply conditions and thereby boost prices, but warns that if the cut is too severe, it could force the smelter industry into an abrupt halt.

FINI estimates three impacts from the nickel ore production cut: reducing Indonesia’s nickel production, eroding fiscal revenues, and transferring benefits to foreign nickel producers.

What is FINI’s response to the 2026 nickel RKAB cut? What are the implications for the industry? For more details, watch the dialogue between Serliana Salsabila and FINI Chairman Arif Perdana Kusumah in Closing Bell, CNBC Indonesia (Thursday, 05/03/2026).