Regarding The Government's Discourse On Restricting Nickel Production, Business Actors Comply

JAKARTA - nickel commodity business actors ensure that they will comply with government-approved directives and licensing, including if later the government decides to cut nickel production in the country. This is intended to maintain a balance between demand and nickel supply so that nickel prices can be maintained

"Industrial actors will definitely implement all permits that have been approved by the government except for PETI. So indeed we see companies that have been obedient, of course, carrying out what has been approved and given by the government," said Indonesian Mining Chairman Istitute Irwandy Arief in the Mining Zone quoted on Tuesday, January 7.

Irwandy said that actually domestic nickel production is not excessive. The decrease in nickel prices was due to a decrease in nickel demand from China. He explained that nickel consumption in CHina has decreased due to global conditions due to war and other conditions, so development that requires steel has delayed.

"Why did last year's demand decrease so that Nickel Pig Iron's consumption in particular and feronikel decreased, especially Chinese consumption," continued Irwandy.

He continued, there are several ways that the government can anticipate the decline in nickel prices, one of which is the implementation of ESG.

"If the government consistently runs good mining practices where the main components are ESG, then there may be improvements in nickel ore production," explained Irwandy.

Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia said that his party was currently reviewing the total domestic nickel needs.

By evaluating this need, he said, the government can determine exactly how much RKAB for nickel commodities will be approved.

"I and the Director General of Mineral and Coal and a team from the ministry are still reviewing the total need for nickel. From the total need for nickel Then we can see how much the RKAB is," said Bahlil, quoted on Monday, January 6.

Bahlil added that this study was carried out so that the balance between production and industrial needs could be maintained so that nickel prices were stable.

With excessive nickel production, he said, it could disrupt nickel prices in the international market.

"Don't let the RKAB be given more, but the absorption in the industry is not appropriate," continued Bahlil.