JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) will evaluate the Work Plan and Budget (RKAB) of mining companies for the 2024-2026 period, especially for nickel mining companies.

Tri Winarno, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, said that this evaluation was carried out so that nickel mining companies would not be reckless in terms of production. This production cut, said Winaro, is even possible, especially if there are companies that are not committed to post-mining reclamation guarantees and mining accidents.

‘The point is, we will do an evaluation,’ said Winarno, quoted by CNBC Indonesia last week.

According to data compiled by IDN Financials, Indonesia's nickel ore production in 2024 reached 215 million tonnes per year. This is higher than the 2023 production realisation, which only reached 175.6 million tonnes.

Winarno added that cutting nickel production can also maintain the selling price in the global market. ‘We are the largest exporter in the world, let's try to evaluate it,’ Winarno explained.

Earlier this year, nickel prices on the global market hit a four-year low of US$14,767.50 per tonne. (KR/LM)