The Indonesian government is considering significantly reducing the nickel mining quota for 2024 to stabilize the downward trend of nickel prices.

Nickel, as a key raw material for electric vehicle batteries, has seen consistent growth in demand. However, despite being the world's largest producer, Indonesia has experienced a 45% drop in nickel prices over the past year due to increased supply and demand growth falling short of expectations.

Market pressures have led to foreign producers halting production, while Indonesian smelters are facing supply shortages and declining profits.

Nevertheless, the government may still take measures to balance the market and protect nickel reserves. If the reduction is implemented, it will have a significant impact on the global market, potentially forcing Indonesian smelters to increase imports, leading to market tensions and higher nickel prices.

Balancing market demand, protecting resources, and maintaining confidence pose a complex challenge for the Indonesian government.