Indonesia Approves Higher Nickel Mining Quota for 2025 Despite Oversupply Concerns

Indonesia has approved a 2025 nickel mining quota of 298.5 million wet metric tons, up from 271.89 million tons in 2024, according to the country’s nickel miners' association (APNI). This announcement contradicts earlier reports of a potential production cut, with APNI Secretary General Meidy Katrin Lengkey confirming the figure during a parliamentary hearing.

Earlier in January, Indonesia’s energy ministry had indicated a quota of approximately 200 million tons, with plans to reassess the figure to stabilize nickel prices. However, the approved quota significantly exceeds those initial projections. “The approved mining quota for 2025 has reached nearly 300 million tons, whereas there was a rumour of a production cut to 150 million tons,” Lengkey told parliament.

Indonesia, which accounts for 63% of global nickel production, has seen a surge in output in recent years, contributing to a global oversupply that has led to significant price declines since January 2024. The Energy and Mineral Resources Ministry has yet to comment on the updated quota.

Since implementing a ban on raw nickel exports in 2020, Indonesia has become one of the world’s largest producers of nickel products, further solidifying its dominant position in the market. The increased quota for 2025 reflects the country’s commitment to maintaining its output levels despite concerns over market stability.