Business · Energy & Commodities · 1 hr ago
Indonesia Plans to Cut Nickel Production Quotas in 2027
Indonesia plans to cut nickel production quotas in 2027 to address excess supply.
Coordinating Minister Bahlil Lahadalia said oversupply has pushed global nickel prices below US$16,000 per metric ton.
The planned cuts will be set through Indonesia’s work and budget plan for mining companies.
Bahlil urged nickel producers to avoid producing too much, warning that buyers could stockpile semi-finished material when prices are low and sell it when prices rise.
He said nickel is a finite resource that cannot be replanted, unlike crops such as palm oil, so it needs careful management.
Mining Director General Tri Winarno confirmed the plan, but the size of the cuts has not been announced.
Indonesia plans to cut nickel production quotas under its 2027 work plans to address oversupply and support prices.
Energy and Mineral Resources Minister Bahlil Lahadalia said he was ready to take responsibility for the decision, despite expecting protests from businesses.
CNBC Indonesia reported that global nickel oversupply was nearly 800,000 tons against annual demand of 3.5 million tons.
The outlets gave different nickel price figures: Detik said prices were below US$16,000 per metric ton, while CNBC Indonesia cited about US$15,400 and also quoted Bahlil citing US$15,800.
The government has not yet provided details of how much the quotas will be reduced.
- Who
- Bahlil Lahadalia and Indonesia’s government. Mining regulator Tri Winarno confirmed a plan to cut quotas.
- What
- Indonesia plans to reduce nickel production quotas in its 2027 work plans to address oversupply.
- When
- The plan was announced on November 2, 2026, for 2027.
- Where
- Indonesia; the stated aim is to affect supply and demand in the global nickel market.
- Why
- Officials say oversupply has pushed down prices and that managing supply could help support prices and state revenue.
This story does not have two clearly opposing sides.
Indonesia’s coal contribution was 540 million tons, or 43% of global coal trade, according to Bahlil.
Mining non-tax state revenue was Rp 141 trillion, according to CNBC Indonesia.
Bahlil announced a plan to cut nickel production quotas under the 2027 work plans.
The planned nickel quota cuts are due to apply.
- Planned quota year
- 2027
- Global nickel demand
- 3.5 million tons per year
- Reported oversupply
- Nearly 800,000 tons
- Nickel price
- Below US$16,000 per metric ton; outlets reported differing figures
- Quota details
- Not yet provided
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What people are saying
I am responsible for the good of the nation and the state. Do not hesitate. I know there will be many protests.
How can the price be good?
If oil palm is 25 years old, it is replanted to grow anew. But can nickel bear fruit underground? If it is taken, it is gone; it cannot grow again.