Indonesia announced plans to reallocate its RKAB quotas, which are state production permits for mining companies. 

The government intends to reduce the permit term from three years to one year starting from 2026, aiming to address the current overproduction and falling prices of nickel ore.

Currently, Indonesia's approved production volume for nickel ore stands at 45 million tons, while domestic industry demand is only 20 million tons. This imbalance puts obvious pressure on prices. 

The Indonesia Nickel Miners Association (APNI) has warned that the change could lead to bureaucratic bottlenecks, potentially jeopardizing investment and production security.

For the international market, short-term supply bottlenecks may arise if approvals are delayed. In the long term, there is a risk of decreasing private investment in mining and processing, and possibly further mine closures.