SMM Flash News: Indonesia's H1 2025 Nickel Production Reaches 120M Tons, while RKAB Quota of 364M Tons Has Been Approved

Published: Jul 10, 2025 13:03

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[SMM Flash News] On July 8th, APNI Secretary-General Meidy Katrin Lengkey during a CNBC Indonesia interview revealed that Indonesia's nickel ore production reached only 120 million tons in 2025, with first-quarter absorption was 50-65 million tons, while the second quarter reached 60-65 million tons. In contrast, the RKAB quota approval from January-June 2025 has reached 364.1 million tons, approximately three times greater than the actual production. The main reason of this disruptions was attributed to rainy season disruptions in key mining regions like Sulawesi, which impacts low RKAB utilization domestically. In addition, nickel ore imports from the Philippines reached 4.6 million tons in the first half of the year.

Beyond this issues, Meidy also stated that Indonesia's nickel industry faces mounting cost pressures since January 2025 due to DMO policies, biodiesel blending increases (B40 to B50), new export fees, and tax hikes including GMT and proposed levies, forcing 28 RKEF lines to shut down and straining smelter operations. Concurrently, APNI is advancing sustainability efforts by developing IRMA-aligned ESG standards and analyzing 57 local regulations to enhance Indonesia's nickel industry reputation, aiming to reinforce its global leadership position through improved market confidence.

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