Govt admits nickel output cap aimed at preserving reserves

By Adianto P. Simamora

The Indonesian government has acknowledged that its policy of tightening nickel ore production approvals is primarily aimed at safeguarding the country’s long-term reserves rather than influencing short-term market prices.

Speaking at a mining outlook conference on Wednesday (March 4), Director General of Mineral and Coal Tri Winarno said the policy was necessary because mining companies continue to propose very large production volumes under the Work Plan and Budget (RKAB) approval process, raising concerns about the pace of resource depletion.

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“Our main focus is to safeguard reserves. Indonesia’s nickel reserves are around 5 billion tonnes. If the extraction reaches 300–350 million tonnes per year, they could be depleted in less than 20 years,” Tri said.

He said nickel miners submitted RKAB production plans totaling around 415 million tonnes for 2025, while the volumes approved by the government — and later realized — were around 290–317 million tonnes.

For 2026, the proposed production plans have increased further, reaching around 460–470 million tonnes, reflecting continued expansion plans among mining companies.

However, the ministry plans to approve only around 260–270 million tonnes, as part of efforts to keep production in line with long-term resource sustainability and the needs of Indonesia’s expanding domestic smelting industry.

Editing by Reiner Simanjuntak