The Indonesian Ministry of Energy and Mineral Resources has set the 2026 nickel production quota at 250-260 million tons, aligning output with domestic smelter capacity to support price stability. With global nickel prices now at US$17,000-US$18,000 per ton, higher than 2025 levels, the policy aims to balance supply and demand and reinforce downstream industry growth.

To strengthen oversight, the government is strictly reviewing the Work Plan and Budget (RKAB), approving only companies that meet environmental, technical, and administrative standards. Under current rules, miners with multi-year approvals may produce only up to 25% of their quota before March 2026 to help mitigate volatility and reduce production risks.

The Indonesian Nickel Miners Association (APNI) supports the government’s sustainability goals but warns that tighter restrictions may increase costs and pressure financial performance, especially for low-cost producers. 

Overall, the policy seeks to align industrial expansion with global market conditions while ensuring supply chain stability and fair competition.