Indonesian Metals Sector "Nickel: regulator signals no nationwide RKAB..."

Research evidence excerpt

Indonesian Metals Sector "Nickel: regulator signals no nationwide RKAB..."

Global Research

30 June 2026ab

Indonesian Metals Sector Equities

IndonesiaNickel: regulator signals no nationwide RKAB

increase in H226 Mining & Metals

Igor Putra

Analyst

igor.putra@ubs.com

The regulator’s RKAB approval rules supportive of nickel prices +62-21-2554 7033

Talks today between the local mining regulator (the ESDM) and Parliament may signal Ivan Reynaldo Sutheja

support for nickel prices based on our review of the minutes of the meeting: 1) a Analyst

continued focus by the ESDM to tighten nickel supply; and 2) no nationwide increase in ivan-reynaldo.sutheja@ubs.com

the nickel ore mining quota (RKAB). This is in line with our positive view on nickel and +62-21-2554 7037

one reason for our recent preference shift to nickel from gold in Indonesian metals. The Daniel Major

ESDM highlighted the procedure to gain RKAB approval, including that a proposed Analyst

RKAB increase must be linked to the applicant’s smelting/refining capacity in Indonesia. daniel.major@ubs.com

While the window to submit a revised RKAB starts on 1 July through to 31 July 2026, the +44-20-7568 3472

ESDM said proposals will be reviewed individually. Dim Ariyasinghe

How do the RKAB rules fit our criteria estimates? dim.ariyasinghe@ubs.com

We think it is in line. We earlier attempted to gauge the regulator’s RKAB criteria and +61-3-9242 6385

stated that we believe miners with a higher certainty of securing RKAB will record a Timothy Handerson

higher valuation multiple given improved topline visibility (The code for higher nickel Analyst

RKAB certainty). Criteria. The ESDM’s integrated nickel value chain is within our criteria, timothy.handerson@ubs.com