Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, has recently announced the government’s plan to impose a moratorium on the construction of new nickel processing and refining facilities, particularly those utilizing the Rotary Kiln-Electric Furnace (RKEF) technology to produce Nickel Pig Iron (NPI), as part of the efforts to preserve the resources.
“We are imposing a moratorium on NPI pig iron. The Ministry of Industry has agreed that there will be no further additions for RKEF,” Arifin said on August 2, 2024.
Arifin elaborated that the moratorium on RKEF smelters is aimed at controlling the country’s nickel ore reserves and production.
Currently, Indonesia’s nickel resources amount to 17 billion tons, with reserves totaling 5 billion tons.
Meanwhile, nickel ore production is projected to reach 240 million tons under the 2024 Work Plan and Budget (RKAB).
“We need to manage this carefully to ensure that downstream industries have better value-added prospects. This will also support our energy transition towards the Electric Vehicle (EV) industry,” Arifin said.
This strategic move underscores the government’s commitment to preserving Indonesia’s natural resources while fostering the development of value-added industries, particularly in the rapidly growing electric vehicle sector.
