The Ministry of Energy and Mineral Resources Cuts Nickel Production to 260 Million Tons

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) revealed plans to cut nickel ore production in the 2026 Work Plan and Budget (RKAB) of mining companies to 260 million tons.

Director General of Mineral and Coal (Dirjen Minerba) of the Ministry of Energy and Mineral Resources, Tri Winarno, said that the production of this nickel commodity was cut by 31 percent compared to the 2025 RKAB which was recorded at 379 million tons.

"260 (million tons) is about that, right?" said Tri, quoted Friday, February 13.

Tri also highlighted the positive impact of this policy on market dynamics.

According to him, the announcement on December 23, 2025 on production cuts caused a rapid market response and an increase in nickel prices.

"On December 23, 2025, when the Minister (Bahlil) announced that he would cut production. Then the nickel price immediately rose. The price is now from 14,800 (when there is an oversupply), the peak was 18,800, but now it can be checked at around Rp17,000 something," said Tri.

According to him, the significant market reaction shows that the production adjustment step by Indonesia, as one of the world's largest nickel producers, has a significant influence on the global market.

"For the government, a more selective RKAB policy is expected to be able to maintain price stability while ensuring energy reserves for the future," he said.