Indonesia weighs moratorium on nickel smelters making intermediate products
Bahlil Lahadalia said global nickel supply exceeds demand by 2.5 million tonnes, putting pressure on international prices.
Indonesia is considering restrictions, potentially including a moratorium, on the construction of nickel smelters that produce intermediate materials. Bahlil Lahadalia, Coordinating Minister for Downstreaming and Energy Transition and Minister of Energy and Mineral Resources, said the government wanted to curb oversupply while encouraging industries that make finished downstream products.
Speaking at the Investor Daily Summit 2026 in Jakarta, Bahlil put the proportion of operating nickel smelters still producing intermediate materials at 50–60 per cent. He said global supply exceeded market requirements by 2.5 million tonnes, driving international nickel prices lower.
Bahlil said the government would regulate national production volumes to avoid selling Indonesia’s mineral commodities cheaply in a saturated market. Actual smelter output would be adjusted to global supply and demand rather than determined solely by installed capacity or smelters’ requests, he said.
The production controls are also intended to support price stability, optimise state revenue and conserve Indonesia’s natural resources. Bahlil said minerals such as nickel are finite and cannot be replenished like agricultural or plantation crops, and urged that resources be preserved for the country’s future.
