Indonesian nickel miners working to launch local metal exchange in 2026

Indonesia is the world’s biggest producer of nickel and has the largest global reserves.

Since 2020, the government has banned exports of nickel ore to attract investment in smelting. More recently, authorities have expressed eagerness to be able to have more influence over nickel prices, which ended 2024 at four-year lows.

Nickel miners group APNI has proposed and received approval from the government to set up an Indonesian metal exchange, secretary general Meidy Katrin Lengkey said on the sidelines of the Shanghai Metals Market Indonesia Critical Minerals Conference & Expo.

At its initial phase, the exchange will likely handle nickel pig iron contracts, with a plan to expand to other nickel products as well as other metals, Meidy said late on Tuesday.

The group is working on the concept and structure of such a bourse, basing them on the system used by existing exchanges like the London Metal Exchange and the Shanghai Futures Exchange.

“Our ambition is to control the world through nickel,” she said.

In a panel discussion, Edric Koh with the LME said he welcomed the plan, underlining a potential need for regional price discovery based on local demand and supply dynamics that could complement a global reference price.

Daniel McElduff with Abaxx Exchange said careful consideration must be made for the plan, including its timing and regulatory environment.

“Does the product you’re offering have commercial use? Will it attract buyers and sellers to come to it on a voluntary basis and be active in it? And if the answer is no, then you’re really not spending your resources wisely.”