{
  "id": 9498401,
  "title": "Indonesia’s nickel curbs struggle to convince markets",
  "url": "https://urgent.news/2026/09/24/indonesias-nickel-curbs-struggle-to-convince-markets",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-24T05:12:12.000Z",
  "source": {
    "name": "The Jakarta Post",
    "slug": "the-jakarta-post",
    "url": "https://www.thejakartapost.com/opinion/2026/09/24/indonesias-nickel-curbs-struggle-to-convince-markets.html"
  },
  "original_language": "en",
  "account": "Indonesia is grappling with the challenge of controlling its nickel market after securing a dominant position in its production. The country now accounts for over 60 percent of global nickel output, which is used in stainless steel manufacturing and electric vehicle batteries. A ban on nickel exports in 2020 forced companies to invest in domestic processing, turning Indonesia into a template for other resource-rich nations. However, maintaining supply-demand balance remains a significant hurdle.\n\nJakarta's efforts to rein in the nickel sector include cutting mining quotas and implementing stricter environmental controls. The mining quota was reduced from 379 million metric tonnes in 2022 to between 250 to 260 million tonnes this year, leading to a May high of $20,000 per tonne on the London Metal Exchange. Nevertheless, the price has since dropped to $16,500 as market confidence in Indonesia's ability to manage its nickel tiger wanes.\n\nPolicymakers are faced with the dilemma of reducing mining output without adversely impacting nickel processors. Some processors, like Eramet, have resumed operations at their Weda Bay mine following a suspension due to exhausted quotas. However, Indonesia's nickel processing capacity requires 315 million tonnes of ore annually, which is currently underutilized.\n\nDespite these measures, Indonesia's nickel sector continues to struggle. Imported nickel from the Philippines and the Solomon Islands has increased, but this does not fully address the issue. China, a major consumer of nickel, has been stockpiling the metal, potentially exacerbating the surplus. The current global exchange stocks of refined nickel are sufficient to supply the market for seven weeks, suggesting that Indonesia's efforts to control production and pricing may still be a work in progress.",
  "summary": "Indonesia is learning that building a dominant position in the nickel market is the easy part. Leveraging its influence over supply to control prices is proving much trickier.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}