Energy ministry denies report of approving 360 million-ton nickel output quota

The Ministry of Energy and Mineral Resources (ESDM) has denied reports that it plans to increase the country's 2026 nickel ore production quota under approved Work Plans and Budgets (RKABs) to 360 million metric tons.

"The Ministry of Energy and Mineral Resources has never made such a statement," Tri Winarno, Director General of Mineral and Coal, told Bloomberg Technoz on Wednesday.

The denial came after Bloomberg News, citing people familiar with the matter, reported that the Indonesian government was preparing to allow a significant increase in nickel mine production later this year.

According to the report, the ministry had informed several mining companies that a mid-year RKAB revision could raise the country's approved nickel ore production quota to 360 million tons from around 260 million tons currently approved for 2026.

The report said the proposed increase remained subject to change and would ultimately require approval from Energy and Mineral Resources Minister Bahlil Lahadalia.

Mining companies are expected to submit applications for RKAB revisions next month. A ministry spokesperson told Bloomberg that the scale of any potential revision had not yet been finalized.

The government has so far approved nickel ore production quotas of around 250 million-260 million tons for 2026, well below the approximately 379 million tons approved in 2025, as part of efforts to support global nickel prices and improve market balance.

However, the ministry has recently signaled a willingness to review production limits during the mid-year RKAB evaluation period, which begins in July.

Speaking earlier this week, Tri said the government was still assessing requests from miners and evaluating market conditions before deciding whether any adjustments to approved production quotas were necessary.

"We are still conducting evaluations," Tri said on Monday. "I cannot say yet."

Several nickel producers, including Indonesia Weda Bay Industrial Park (IWIP), PT Central Omega Resources Tbk and PT Vale Indonesia Tbk, are reportedly preparing to seek higher production quotas for the second half of the year.

The lower quota approvals have raised concerns among downstream nickel producers, with several smelters reportedly operating below capacity because of limited ore supply.

The government's production curbs form part of a broader strategy to manage commodity supply and support prices, although industry participants have argued that tighter quotas could disrupt feedstock availability for Indonesia's rapidly expanding nickel processing industry.

Editing by Reiner Simanjuntak