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🇮🇩 Indonesia /Energy & Infrastructure

Energy Ministry Denies Reports of Additional 25 Million Ton Nickel Production Quota for Weda Bay

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Indonesia's Ministry of Energy and Mineral Resources denies reports of approving an additional 25 million tons of nickel production for PT Weda Bay Nickel.
  • The ministry stated that while companies can request higher production quotas, approvals are not automatic, emphasizing responsible natural resource management.
  • Production volumes are kept confidential to stabilize international commodity prices, according to the ministry.

Indonesia's Ministry of Energy and Mineral Resources has firmly denied rumors that it approved an additional 25 million tons of nickel production for PT Weda Bay Nickel. Tri Winarno, Director General of Minerals and Coal at the ministry, stated that no such approval has been granted to date.

There are rumors that Weda Bay received an additional 25 million tons. Well, Weda Bay can apply for it, but the approval has not been given yet.

— Tri WinarnoDirector General of Minerals and Coal at the Ministry of Energy and Mineral Resources, clarifying the status of production quota requests.

"There are rumors that Weda Bay received an additional 25 million tons. Well, Weda Bay can apply for it, but the approval has not been given yet," Tri Winarno said. He clarified that while companies are free to request any production quota, the government does not automatically approve these requests, adhering to the principle of not squandering natural resources.

What they applied for, they can apply for as high as they want, but it hasn't been (approved) yet. But the news is that they have received our (ESDM) approval.

— Tri WinarnoResponding to circulating reports about the approval of additional production quotas.

Tri Winarno further explained that the government intentionally keeps nickel and coal production volumes confidential to maintain stable international commodity prices. "The Minister (ESDM Bahlil Lahadalia) has said, it's difficult for us to talk about the numbers," he noted. Minister Bahlil Lahadalia prioritizes relaxing the Work and Budget Plan (RKAB) for companies that pay high royalties. He confirmed that production quotas are revised through RKAB, but declined to specify the exact changes.

The Minister (ESDM Bahlil Lahadalia) has said, it's difficult for us to talk about the numbers.

— Tri WinarnoExplaining the government's policy of not disclosing production volumes.

Bahlil emphasized that revealing production volumes after RKAB revisions could cause price volatility in the global market. "Because once I state (the volume), prices can fluctuate again. It can affect world prices," Bahlil said. He asserted that Indonesian mining commodities, including nickel and coal, must be sold at good prices, especially since they are non-renewable natural resources.

Because once I state (the volume), prices can fluctuate again. It can affect world prices.

— Bahlil LahadaliaMinister of Energy and Mineral Resources, explaining the rationale behind keeping production volumes confidential.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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