IUI Smelter Mau Dibatasi, ESDM Gives Signal Pangkas Production Nickel 2026

Director General (Dirjen) Mineral and Coal ESDM Tri Winarno. (Photo: Maria Trisnawati/VOI)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has signaled that it will cut nickel production by 2026 following a move by the Ministry of Industry to limit the issuance of investment permits and Industrial Business Permits (IUI) for new nickel smelters.

Director General (Dirjen) of Mineral and Coal ESDM Tri Winarno said his party also plans to adjust the production target and production quota for nickel 2026.

"If the moratorium is for that, because we are oversupply for that, we will support it," Tri said when met at the Ministry of Energy and Mineral Resources Building, Monday, November 10.

Just so you know, the nickel production plan set this year in the 2026 Work Plan and Budget (RKAB) is set at 319 million tons.

Thus, the 2026 production plan will be below 319 million tons.

"Anyway, we evaluate the higher. It's over 300 thousand, it could be below," Tri said.

Tri also emphasized that the Ministry of Energy and Mineral Resources only oversees smelters that are integrated with mining that have a Mining Business Permit (IUP).

Meanwhile, the IUI-holder stand-only smelter is handled by the Ministry of Industry

Tri also said that if the nickel smelter of the IUP holding company was small enough, he estimated that there were only about 7 nickel companies that had smelters integrated with mining.

However, Tri pushed for restrictions on the issuance of a new nickel smelter IUI that plans to produce intermediate products.

Because, he said, this could accelerate the increase in downstreaming to products that were more downstream.

"If I'm not mistaken, there are only seven, that's some that don't work. From us, the integration is limited," Tri said.