Indonesia aims to effectively manage the supply and demand of nickel ore to support market prices, according to its mining minister, Bahlil Lahadalia, on Friday. Reports indicate that delays in the quota approval process have led some smelters to source ores from the Philippines.
As a major nickel ore producer, Indonesia has revised the validity of its mining quota document, known as RKAB, from one year to three years, while still determining annual mining volumes.
“The state must be present to maintain supply and demand. An oversupply with low demand will lead to falling prices,” Bahlil explained to reporters.
He stated that prices and demand from smelters will be key factors in calculating market balance. While he did not disclose a specific price target, he noted that the government’s monthly mineral reference price could serve as a useful guide.
“We will adjust the reference price to ensure a fair balance between industrial products and raw materials, allowing both the industry and miners to maximize profits,” he added.
Bahlil emphasized the importance of not concentrating mining quotas among large players to foster growth for smaller local miners. “We hope industries will also source ores from miners without smelters,” he said.
With Bahlil’s term as energy minister set to end in two days, he has been invited to join the incoming government of president-elect Prabowo Subianto, who will be inaugurated on Sunday. While he did not comment on his future cabinet position, he mentioned discussions regarding natural resource management and energy security with the president-elect.
