Indonesia plans to reduce nickel output this year

The Minister of Energy and Mineral Resources has acknowledged that the government is considering revisiting the nickel industry's Work Plan and Expenditure Budget (RKAB) to strike a balance between the industry's needs and the sustainability of local entrepreneurs.The policy aims to make RKAB more in line with the actual needs of the industry, and at the same time give local enterprises the opportunity to sell their products to avoid the difficulties faced by local entrepreneurs in selling their products. No cuts have been made yet, but the government will balance the demand for RKAB with the existing industrial capacity and focus on local entrepreneurs. In addition the Director General of Mines and Coal emphasized that there will be a comprehensive assessment of the RKAB of the mining industry, especially nickel companies, in 2024-2026 to avoid over-aggressive nickel production, and that there may be cuts in production if there is non-compliance by companies with mine reclamation guarantees, etc. The production of nickel ore in 2024 will be around 215 million tons per year, and there may be a reduction in 2025 to cope with the continued decline in prices.