[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [ACTIVE] · [BUSINESS]

3 clusters · 10 sources · 12 days · First seen · Last updated

Indonesia nickel quota, production, and energy challenges

Overview

In the second quarter of 2026, Indonesia’s nickel sector saw a significant rise in output. Vale Indonesia reported selling 1.07 million wet metric tons of ore from its Bahodopi block and 495,601 WMT from its Pomalaa block, while achieving a 19% increase in nickel matte production. However, export of mixed-hydroxide-precipitate (MHP) and other products from Chinese smelter Tsingshan Holding Group faced delays due to new government inspection rules requiring additional testing for rare-earth and radioactive elements.

Market volatility increased following the July 31 closure of the 2026 RKAB (Work Plan and Budget) nickel quota application window. This triggered a rally in nickel futures and spot prices, which reached approximately US$17,048 per tonne in July. The Energy and Mineral Resources Ministry is currently reviewing quota revisions, with Minister Bahlil Lahadalia signaling a “measured relaxation” that prioritizes firms paying higher royalties. These adjustments are expected to be finalized in August or September.

Concurrently, the nickel processing sector faces potential disruptions from nationwide electricity shortages. These outages, driven by a reduction in coal mining quotas and issues with the Domestic Market Obligation (DMO) policy, threaten the stability of the processing plants vital to the global stainless steel and electric vehicle battery supply chains.

Entities

Indonesia · Tsingshan Group · Tsingshan Holding Group Co. · PLN · Nickel

Timeline

  1. 5 days ago

    [BUSINESS] 2 sources
    Indonesia faces electricity shortages amid coal production crisis

    Indonesia faces widespread electricity shortages due to coal production issues, quota reductions, and domestic pricing policies, impacting both households and the critical nickel processing industry.

  2. 11 days ago

    [BUSINESS] 3 sources
    Indonesia's Nickel Quota Review Sparks Price Surge

    Indonesia’s nickel quota revisions entered a key approval phase, lifting SHFE nickel prices 1.55% as the government signals a measured relaxation while maintaining tight supply.

  3. 16 days ago

    [BUSINESS] 5 sources
    Indonesia's Nickel Industry Faces Production Gains and Export Hurdles

    Vale Indonesia boosted Q2 nickel ore sales and matte output, while Tsingshan halted MHP exports amid new Indonesian inspection rules; the government keeps RKAB quotas tight and nickel prices rose.

Sources

36kr.com · antaranews.com · cn.dailyeconomic.com · dbarchitects.com · face.ba · katadata.co.id · m.scmp.com · matabangsa.com · seekingalpha.com · slobodenpecat.mk

This summary has been updated 1 time: see revision history