PT Gunbuster Nickel Industri (PT GNI), one of Indonesia’s largest nickel smelters, has significantly reduced production and is nearing a complete shutdown due to worsening financial conditions. 

Sources indicated that PT GNI has delayed payments to local energy suppliers and is struggling to secure nickel ore for production. If the situation does not improve, full-scale production could cease soon. 

With an annual capacity of 1.8 million tons, PT GNI has seen most of its 20 production lines go offline, leaving only a few operational since early 2024. The company was originally backed by China’s Delong Nickel, which declared bankruptcy last year. 

Weak stainless steel demand and limited mining quotas issued by the Indonesian government have created severe supply shortages, pushing PT GNI into deeper financial distress. Following Delong Nickel’s bankruptcy, PT GNI’s operations were already facing financial strain. The ongoing financial turmoil now raises serious concerns over the future of PT GNI and its role in Indonesia’s nickel industry.