[SMM Nickel Flash News] Bahlil Proposes Regulating Nickel Smelter Output

Indonesian Coordinating Minister for Hilirisasi and Transisi Energi Bahlil Lahadalia said the government is considering regulating nickel smelter utilisation when the global market is oversupplied.

“Even if installed capacity reaches 10, not all of it may be allowed to operate while we are still in an oversupply situation. That is what we will regulate,” Bahlil said.

Under the proposal, smelters would not necessarily operate at full capacity. The government would adjust smelter output based on global nickel supply and demand conditions to help prevent excessive production from putting further pressure on nickel prices.

Bahlil said the price threshold for triggering production adjustments is still being calculated.