Nickel production grows as Indonesian government adjusts policy to help local development

The secretary general of the Association of Indonesian Nickel Mines (APNI) said that Indonesia's nickel production in 2024 is close to 300 million metric tons per year at 298.4 million metric tons.From 2023 to 2024, Indonesia's nickel production has been increasing, mainly due to the large-scale production of Mixed Nickel Hydroxide Precipitate (MHP) and Nickel Matte, with nickel production growth up to 301 TP3T of the existing capacity.Meanwhile, Indonesia's nickel production dominates the international nickel market with as much as 651 TP3T.On the other hand, the Minister of Energy and Mineral Resources has acknowledged that the government is considering re-examining the nickel industry's work Program and Budget Expenditure (RKAB) to balance the industry's needs with the sustainable development of local entrepreneurs and to ensure that RKAB adjustments are more in line with the actual needs of the industry. The policy aims to provide local businesses with the opportunity to sell their products, and without the allocation adjustment, local entrepreneurs will find it difficult to sell their minerals. For example, if an enterprise applies for 20 million RKAB, to meet the factory stock, the government will grant it 60%, and at the same time require it to purchase local 40% products to ensure that there are sales channels for local people.