Indonesia caps nickel output and adds coal supply for state power

Indonesia’s Energy and Mineral Resources Ministry said it will not expand the national nickel production quota beyond the current 250‑260 million tonnes for 2026, allowing only limited increases to address shortfalls at domestic smelters. The move aims to prevent a global oversupply that could depress nickel prices.

At the same time, the ministry announced an increase in coal production for 2026, earmarked exclusively for PT PLN (Persero) to support the country’s electricity generators. The additional coal, up to 16.8 million tonnes for the year, is intended to fill a supply gap and help maintain system reliability, with the government cautioning against excess supply that could affect market prices.