Walsin says RI nickel policy tightening cuts NPI supply, raises production costs
Monday, May 18 2026 - 03:40 PM WIB
By Adianto P. Simamora
Taiwan-listed Walsin Lihwa Corporation said tightening nickel mining policy in Indonesia has reduced nickel pig iron supply, while a new nickel ore pricing mechanism issued by the Indonesian government in April has further increased NPI production costs.
The company said in its 2026 first-quarter investor conference presentation dated May 8 that the operating condition of its resources business in the second quarter is expected to be similar to the first quarter.
“Indonesia’s tightening nickel mining policy has reduced nickel pig iron supply. In addition, in April, the Indonesian government issued a new nickel ore pricing mechanism, further increasing nickel pig iron production costs,” Walsin said in the presentation.
Read also: Walsin targets 83,000 tons NPI sales in 2026 after Indonesia growth
Walsin’s resources segment accounted for 18 percent of the company’s operating revenue in the first quarter of 2026. The segment’s revenue contribution declined by NT$700 million year-on-year and NT$700 million quarter-on-quarter, according to the company’s segment revenue change table.
The company did not disclose the Indonesian entity or project linked to the resources segment, nor did it quantify the impact of the new nickel ore pricing mechanism on NPI production costs.
Editing by Reiner Simanjuntak