Indonesia’s Nickel Production Cuts Could Send Prices Soaring to $20,000 per Ton

Illustration (Photo: Doc. ANTARA)

JAKARTA - The Indonesian Nickel Miners Association (APNI) revealed that the discourse on cutting domestic nickel production could cause nickel prices to skyrocket.

APNI Secretary General Meidy Katrin Lengkey explained that based on a study by Macquarie London, if there is a cut in the Work Plan and Budget (RKAB) by 150 million tons, the nickel price is estimated to reach 20,000 US dollars per ton.

"Just given the issue, Macquarie London has given a statement that if the RKAB is cut to 150 million tons, the nickel price will reach 20,000 US dollars per ton again, today it is 15,000 US dollars per ton," said Meidy as quoted on Thursday, January 23.

He added that currently Indonesia's nickel production contributes 63 percent of total global production so that the existence of this commodity is taken into account in the eyes of the world.

On the other hand, the 2025 nickel RKAB that has been approved by the government has reached 298,490,000 tons.

"Our RKAB approval determines the effects of the world nickel issue," he added.

Previously, ESDM Minister Bahlil Lahadalia said that his party was reviewing the total domestic nickel needs.

With this needs evaluation, he said, the government can know for sure how many RKAB for nickel commodities will be approved.

"I, the Director General of Mineral and Coal and the team from the ministry are currently reviewing the total nickel needs. From the total nickel needs, then we can see how much the RKAB is," said Bahlil as quoted on Monday, January 6.

Bahlil added that this study was conducted so that the balance between production and industrial needs can be maintained so that nickel prices are stable.