Bahlil: RKAB Approval Aims to Maintain Balance and Prices

Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that accelerating the approval of the nickel company's activity plan and budget (RKAB) is not the main thing, but maintaining the balance of supply and demand and prices is the main thing.

“RKAB is important but the state must also be fair. So, we will maintain supply and demand. If there is little demand, there is a lot of supply, the price will fall. So, we maintain a balance,” said Bahlil at the Ministry of Energy and Mineral Resources Office, Jakarta, Friday (18/10/2024).

For example, the RKAB of nickel companies that have mines should also buy nickel from mining companies that do not have smelters or small nickel mines or micro, small and medium enterprises (MSMEs) of regional nickel mining companies.

“For example, a smelter needs 10 million tons and he asks for 10 million too, meaning that it does not provide opportunities for him to give from other mining entrepreneurs. If this is the case, it will kill other companies. So, we have to share from 10 million tons, for example giving 60% and 40% buying from outside,” he continued.

According to him, it is like a core plasma garden so that they live together, especially since the companies that have smelters are mostly foreign companies. If the RKAB is given all to foreign companies, where will mining companies that do not have smelters sell to? So, that's the government's job. Present to mediate so that the industry runs well and the companies also run well.

“That is actually the solution. We maintain balance. So, supply and demand prices are maintained or if necessary we give domestic needs. For example, 200 million tons for nickel, our RKAB gives 300 million. Nickel prices fall, which benefits the industry,” he concluded.

Please note, for the 2024 nickel production RKAB has been set by the Directorate General (Ditjen) of Mineral and Coal (Minerba) of the Ministry of Energy and Mineral Resources at 240 million tons and the previous 2023 requirement of 220 million tons increased by 20 million tons. This is to meet domestic needs.

The Ministry of Energy and Mineral Resources continues to encourage the industry to increase added value through nickel downstreaming. Indonesia itself has enormous nickel resource potential, reaching 17 billion tons with reserves of 5 billion tons.