Indonesia prepares nickel output curbs to lift global prices
Energy Minister Bahlil Lahadalia cited a global supply surplus of nearly 800,000 tonnes as he called on miners to limit production.
Indonesia’s Ministry of Energy and Mineral Resources is drawing up tighter limits on nickel output under the Work Plan and Budget (RKAB), aiming to raise prices on the world market. Energy Minister Bahlil Lahadalia attributed weak prices to excessive production.
Bahlil put nickel prices at about US$15,800 per tonne, below US$16,000 per tonne, and estimated annual global demand at around 3.5 million tonnes. With surplus supply approaching 800,000 tonnes, he asked mining companies and other nickel businesses to hold back output when the market could not absorb it.
He warned that overproduction could leave Indonesian nickel vulnerable to purchases at low prices by certain countries, which could stockpile it for resale when prices recovered. While acknowledging that restrictions would draw protests, Bahlil argued that finite mineral resources should be preserved for future generations rather than extracted at unfavourable prices.
The government pointed to its earlier use of RKAB to balance coal supply and demand, saying output had declined while prices and state revenue rose. Bahlil also said the government was studying how to extend nickel processing into finished goods, rather than stopping at intermediate products.
