Indonesia signals possible easing of coal and nickel output caps

Amid rising global demand, Indonesia faces the challenge of maintaining output controls to prevent oversupply while ensuring sufficient raw materials for its rapidly growing domestic industries.

Jakarta (VNA) – The Indonesian government has signalled the possibility of a measured easing of coal and nickel production quotas if commodity prices remain high, as part of efforts to maintain global market balance.

Energy and Mineral Resources Minister Bahlil Lahadalia said no policy change has been made so far, but the government continues to monitor global price movements and demand, according to an official statement released on March 26.

Bahlil said even if prices remain stable, the government will implement measured relaxation in production planning while staying coordinated with the market and maintaining the balance of supply and demand.

In February, the Ministry of Energy and Mineral Resources set Indonesia's 2026 nickel production quota at 260-270 million tonnes, significantly lower than 379 million tonnes in 2025 as part of a policy adjustment.

Indonesia is currently a key link in global energy and technology supply chains, particularly thanks to its strategy of expanding downstream nickel processing, a critical material for electric vehicle batteries.

Amid rising global demand, the country faces the challenge of maintaining output controls to prevent oversupply while ensuring sufficient raw materials for its rapidly growing domestic industries./.

VNA

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