[SMM Stainless Steel Flash] Indonesian Industry Warns of Ecosystem Disruptions from US Trade Pact and Mining Quota Cuts

Published: Feb 27, 2026 10:19

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The Indonesian Nickel Industry Forum (FINI) has warned that the newly signed Agreement on Reciprocal Trade (ART) with the US must not disrupt the existing nickel ecosystem, which is currently dominated by Chinese investment. The pact, signed on February 19, mandates that Indonesia implement production restrictions on foreign-owned facilities to align with national mining quotas. Simultaneously, the Indonesian government has slashed the 2026 nickel ore production quota to 260–270 million tonnes (down from 379 million tonnes in 2025) to preserve reserves and combat structural oversupply. Notably, the approved quota for PT Weda Bay Nickel was cut from 42 million tonnes to just 12 million tonnes.

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