[SMM Nickel Flash News] Indonesia Signals More Aggressive Nickel Ore RKAB Cuts for 2027

Published: Nov 04, 2026 14:21 (GMT+8)

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Indonesia's Ministry of Energy and Mineral Resources (ESDM) indicated that nickel ore production quota cuts under the 2027 Work Plan and Budget (RKAB) may be more aggressive than those implemented in 2026.

Cecep Mochammad Yasin, Director of Mineral Business Development at ESDM's Directorate General of Mineral and Coal, said the 2027 nickel ore quota would take into account the optimal operating capacity of domestic nickel smelters, rather than being determined solely by their raw material requirements.

Cecep noted that the global nickel market was facing a surplus of approximately 800,000 mt, alongside elevated inventories on the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE). Meanwhile, major producers, including Huayou and Tsingshan, are reportedly considering production capacity cuts of up to 50% amid persistent oversupply and inventory pressure.

According to SMM, Indonesia's revised 2026 nickel ore RKAB quota stands at approximately 295–300 million wmt. ESDM has yet to announce the specific allocation for 2027, but has signalled the possibility of further tightening.

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