[SMM Nickel Flash News] Indonesia's DEN Supports Nickel Production Cuts Through RKAB

Indonesia's National Economic Council (DEN) has expressed support for the Ministry of Energy and Mineral Resources (ESDM) to reduce nickel production through the Work Plan and Budget (RKAB) mechanism to address global oversupply and support prices.

DEN member Septian Hario Seto said on November 3 at the 2026 Minerba Convex event that Indonesia's rising nickel production had contributed to global oversupply and weighed on prices. He noted that nickel prices rose nearly 20% following ESDM's announcement of an initial reduction in the nickel ore RKAB quota to 270 million wmt.

Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia plans to adopt a supply-management approach similar to that used in the coal industry. He added that global nickel demand stands at approximately 3.5 million mt annually, while oversupply is estimated at nearly 800,000 mt, with nickel prices around US$15,800/mt.

DEN's support signals broader policy backing for tighter nickel production controls. With Indonesia's revised 2026 RKAB quota at approximately 295–300 million wmt, the 2027 allocation could face further cuts. However, the impact on ore prices will depend on the scale of quota reductions relative to domestic smelter demand and actual consumption.