The Success Of The Republic Of Indonesia's Nickel Production Menajdi Simalakama, What's Up?

Nickel (Photo: dock. Antara)

JAKARTA - General Secretary (Sekum) of the Indonesian Nickel Mining Association (APNI), Meidy Katrin Lengkey, said that Indonesia's success in producing nickel commodities became simalakama.

This is because domestic nickel production is considered excessive, reducing the world's nickel price.

"For me personally, APNI states that our success is becoming a simalakama because with our overcapacity of production it will reduce the world's nickel price," he said in CLosing Bell, quoted on Thursday, March 7.

Meidy said that his party had even held discussions with the London Metal Exchange (LME) and the International Nickel Study Group as well as the Fast Market and several international institutions in the world regarding Indonesia's position as a world nickel producer.

Meidy said, actually the world's nickel demand is only 3.4 million tons in 2023, but Indonesia's nickel will reach 5 million tons

"This means that we still have other countries, yes, but there are more than the total demand that Indonesia produces, so like it or not, several other countries whose nickel sulfide notes have a higher cost, then higher production will definitely drop," Meidy explained.

He continued, nickel producers are happy because the nickel produced is nickel laterite which has a relatively low cost of procurement compared to nickel sulfide,

"It has been announced by several world companies that because Indonesia has a cheaper 60 percent cost, it has finally killed and brought down several processing plants in other countries," he concluded.