Indonesia's Work Plan and Budget for Nickel Set at 260–270 mn Tons

INDUSTRY 
Indonesia's Work Plan and Budget (Rencana Kerja dan Anggaran Biaya) for Nickel Set at 260–270 mn Tons, Potentially Slowing Down Downstreaming Industry Indonesia’s 2026 nickel Rencana Kerja dan Anggaran Biaya was set at only 260–270 mn tons, a level viewed by industry associations as potentially constraining downstream nickel production due to raw material shortages. The Indonesian Nickel Industry Forum warned that reduced ore supply could delay High Pressure Acid Leaching refinery expansion, lower smelter utilisation by around 25–30%, and cut export volumes of processed nickel products, given total domestic feed demand is estimated at 350–360 mn wmt. Mining experts also highlighted risks of temporary smelter shutdowns and rising dependence on imported ore from countries such as the Philippines or Australia, although the govt. aims to stabilise global nickel prices through tighter production control. (Kontan) 

Government Required PKP2B Gen I and SOEs to Front-Load 30% Coal DMO in Early 2026 
The govt., through the Ministry of ESDM, required PKP2B generation I holders and SOE IUP holders to allocate at least 30% of their approved 2026 production for domestic market obligation (DMO) at the beginning of the year, primarily to secure PLN supply amid pending RKAB approvals for other miners. The policy follows approval of 100% production targets for these entities, while overall 2026 coal output is planned to be cut to above 600 mn tons from 790 mn tons in 2025. The ministry also signaled a potential DMO hike above the current 25% and indicated future DMO pricing may follow market levels, as part of efforts to balance domestic needs and support global coal prices. (Bisnis.com) 

Weda Bay Nickel Output Cut to 12 Mn Tons in 2026 
Weda Bay Nickel received a 12 mn ton ore production quota for 2026, down sharply from 42 mn tons in 2025, as Indonesian authorities moved to tighten supply to support global nickel prices, lifting LME three-month futures 2.8% to USD 17,980/ton. The Halmahera-based mine, owned by Tsingshan Holding Group, Eramet SA, and ANTM, plans to seek quota revision, while national nickel output is targeted at ~260 mn tons in 2026 versus a 379 mn ton target in 2025 amid prolonged price weakness and softer EV-battery demand. The reduction adds pressure on Weda Bay’s expansion plan beyond 60 mn tons and comes as the site faces a potential IDR 3 tn forestry-related fine. (Bloomberg)