Jakarta – The government, through the Ministry of Energy and Mineral Resources (MEMR) emphasised the importance of balancing production and industrial needs in managing national nickel.
Minister of Energy and Mineral Resources Bahlil Lahadalia, in a press conference on Friday, January 17, stated that the government does not plan to cut nickel production this year but is evaluating the Work Plan and Budget (RKAB) to ensure market balance and protect local entrepreneurs. “The RKAB evaluation is part of our efforts to maintain price stability and protect all business actors, both large industries and local entrepreneurs,” Bahlil said.
One of the main measures taken is the regulation of production allocation through the RKAB. If a large company proposes a large production, the government will ensure that local entrepreneurs meet part of the need.
“For example, if a company submits an RKAB of 20 million tons, the government may only approve 60 per cent of that. The remaining 40 per cent must be taken from the community or local entrepreneurs. This is important so that small entrepreneurs can still access the market,” Bahlil said.
Bahlil emphasised that granting excessive production permits without paying attention to the absorption capacity of the industry could trigger a decline in nickel prices. According to him, keeping prices stable is a top priority. “We do not want a situation where production is abundant, but prices fall, ultimately harming business actors. Production should be sufficient, but prices remain good and stable,” he explained.
The RKAB evaluation process also includes an analysis of industrial absorption in the previous year. This is so that nickel production does not exceed actual needs. “We are currently assessing the total national nickel demand. From there, we can determine the appropriate RKAB for this year,” Bahlil added.
A similar approach will be applied to other commodities, such as coal, to ensure the sustainability and efficiency of the mining industry as a whole. “The principle is the same: maintaining a balance between demand and supply. This is the main key in keeping investment in the mining sector attractive and sustainable,” he said.
With the ongoing evaluation, the government hopes to create a fairer mining ecosystem, support domestic industry growth, and ensure price stability in the global market. (Hartatik)