China's Weakening Of Industry Is Called The Cause Of World Nickel Prices Drop

JAKARTA - Director General of Mineral and Coal (Minerba) of the Ministry of Energy and Mineral Resources (ESDM) Tri Winarno said the decline in world nickel prices was suspected by the weakening of global industries, especially China.

In fact, he said, Indonesia supplies 65 percent of the world's nickel needs and is sold in the form of stainless steel, the majority of which is supplied to the bamboo curtain country. Thus, he assessed that the decline in demand (demand) from China was also suspected to make nickel prices weaken.

"Maybe it could be, maybe, I haven't done this yet, it could be a market source for stainlesss steel or for nickel mostly to China with industries that are now declining, this could be the result," Tri said, quoted on Wednesday, May 7.

Tri said the Ministry of Energy and Mineral Resources had several strategies to stabilize the price of nickel. Previously in 2021, his party was actively discussing with the University of Gadjah Mada (UGM) Yogyakata.

"Because the government wants it like that, it turns out that the answer is indeed possible but there are terms of provisions and applicability whose terms and conditions apply, apparently the control is very difficult," added Tri.

So that in the end, Tri continued, the government's strategy is to plan production according to national needs and export plans. This is also done with a Feasibility Study (FS) or Feasibility and Analysis Study on Environmental Impacts (AMDAL) as an inseparable part of the Work Plan and Budget process. (RKAB).

"Then, we evaluate the production approval in the RKAB that has been given," he added.

Tri, who also serves as Plt. The Director General of Oil and Gas, said that his party also set reference coal prices (HBA) and reference mineral prices (HMA) and coal benchmark prices (HPB) and mineral benchmark prices (HPM) as lower limits on sales prices according to the Minister of Energy and Mineral Resources Decree Number 72 of 2025 concerning Guidelines for Determination of Patokan Prices for Sales of Metal and Coal Mineral Commodities).

"Then we also carry out guidance and supervision of the implementation of mining activities so that they are in accordance with the good mining practice," said Tri.