Production Adjusted, Vale Ensures Supply for Sorowako Smelter is Safe

JAKARTA - PT Vale Indonesia Tbk (INCO) revealed that the 2026 Work Plan and Budget (RKAB) had been approved by the Ministry of Energy and Mineral Resources (ESDM). However, the government requires adjustments to ore production throughout 2026.

Vale's Director and Chief Sustainability and Corporate Affairs Officer, Budiawansyah, said that despite the adjustment, the nickel ore supply for the Soeowako rotary kiln electric furnace (RKEF) based pyrometallurgical smelter was ensured to be safe.

"Sorowako is 100 percent, there is no nickel matte that is reduced according to the plan. We only adjust the ore, according to the market," Budi told the media, Thursday, January 15.

He added that although the production plan had been approved, the government would still carry out evaluations this year during the production process.

Budi also welcomed the government's move to reduce the 2026 production target. This, he said, is aimed at regulating nickel mining governance.

"Later there will be a period of revision and a period of re-submission and it will be included there. The government is just trying to manage it first, right. If I see it, then if it really needs it," continued Budi.

Previously it was reported that the Ministry of Energy and Mineral Resources (ESDM) had approved the Vale RKAB today, Thursday, January 15.

President Director and CEO of Vale Indonesia, Bernadus Irmanto said, this approval reaffirms the Company's operational certainty and the continuation of PT Vale's long-term investment as part of Indonesia's national nickel ecosystem and global supply chain.

"With the approval obtained, PT Vale is currently focusing on restoring all operational and construction activities in Sorowako, Pomalaa, and Bahodopi based on safety aspects as the main priority in accordance with the applicable licensing provisions, so that it can run optimally to catch up with the previous temporary suspension," said Bernadus, Thursday, January 15.

He said, the RKAB 2026 approval was the implementation of the Government's policy to re-implement the annual RKAB approval mechanism, replacing the previous scheme which was based on a three-year integrated with other basic permits. PT Vale welcomes this certainty as an important foundation for maintaining production discipline, good governance, and the sustainability of the national nickel industry.

"With complete licensing, all of our activities are now running back to normal, obedient, and sustainable," continued Bernardus.

With the enactment of the 2026 RKAB, the company will continue its operational and production plans in accordance with the given approval, as well as ensure the continuity of supply for the national processing and refining industry.