In brief
Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia announced a policy to curb nickel production to stabilize prices that have dipped below $16,000 per ton. He directed the ministry to regulate annual work plans and budgets, while other sources noted that recent ore production reached 237 million tons, prompting tighter controls.
On 2 November 2026 in Jakarta, Energy and Mineral Resources Minister Bahlil Lahadalia urged Indonesian nickel producers to cut production volumes to help stabilise international prices that have fallen below the US$16,000 threshold and are hovering near US$15,000 per ton. Speaking at the opening of the 2026 Mineral and Coal Convention and Exhibition, Lahadalia blamed Indonesian over‑production for the steep price decline and highlighted a global oversupply of approximately 800,000 tons.
Minister’s Directive
Lahadalia instructed the ministry’s Director General of Mineral and Coal, Tri Winarno, to tighten control over nickel output by managing the approval of annual work plans and budget proposals (RKAB). He said: “Director General, I believe we should implement a strategy to manage supply and demand for nickel through the RKAB process—I will take full responsibility. Do not hesitate; this is for the good of the nation and the state.”
Once nickel is extracted, it is gone—it cannot be replaced. Therefore, it must be managed with great wisdom.
Lahadalia concluded that because nickel is a finite, non‑renewable commodity, extraction rates must be managed with foresight rather than pursued at the expense of national wealth.
Production Context
Petromindo reported that Indonesia’s ore production had reached 237 million tons, prompting the government to tighten output controls. The source stated the government will strengthen controls over nickel production “through its ...” (Petromindo, 2026‑11‑02).
In the same period, a Tempo article – although the page is currently unavailable – echoed the minister’s call, noting that global prices had fallen to around US$15,000 per ton. The article’s headline aligns with Antara’s framing, framing the issue as a call for restraint amid falling prices.
Both sources frame the initiative as a proactive measure to reduce over‑supply and protect national interests, but Antara provides more detail on the specific administrative mechanism (RKAB) while Petromindo situates it within a backdrop of high ore output.
The policy aims to align Indonesian production with global demand, potentially preventing further erosion of nickel’s market value and preserving national revenue streams. If implemented, it could lead to reduced output at the project level, tighter licensing requirements for new mines, and stricter monitoring of existing operations.
Because nickel is a key input for electric‑vehicle batteries, these moves may also influence global supply chains for clean‑energy technology. Governments and industry stakeholders are watching Indonesia’s action as a bellwether for the sector’s future trajectory.
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