The Indonesian government plans to selectively award extra nickel ore production quotas exclusively to smelters experiencing raw material deficits, according to the Indonesia Nickel Miners Association (APNI).

Total production allowances will stay near 260-million to 270-million tons, down from 379-million tons in 2025. Between January and July, domestic consumption hit 142.96-million tons, representing 53% to 55% of the annual cap.

The association recommended permitting an extra 30-million tons as a strategic buffer to supply new smelters starting operations this year. Additionally, the association urged officials to establish transparent rules to curb global market volatility.