[SMM Nickel Flash News] Indonesia Reaffirms Measured RKAB Relaxation, Quota Increase Still Under Review

Indonesia’s Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said on August 3 that the government will implement a “measured relaxation” of RKAB, with additional mining quotas to be approved gradually while maintaining supply-demand balance.

“We will relax it, but in a measured way,” Bahlil said, adding that the government “doesn’t want production to exceed market demand.” The adjustment aims to improve production management flexibility based on market conditions and downstream industry requirements.

Bahlil noted that royalty contributions will be considered in the RKAB evaluation process, with higher royalty-paying companies receiving priority consideration. The government is still reviewing miners’ RKAB submissions and has not disclosed the potential quota increase, stating that figures are still under calculation.

SMM expects additional RKAB approvals to gradually improve Indonesia’s nickel ore availability in H2 2026. However, uncertainty remains over the final quota size, approval timeline, and allocation criteria, keeping miners and smelters focused on further policy developments.