Three-month nickel on the London Metal Exchange rose 3.8% to US$16,375 a tonne at 17:00 GMT on November 5, 2026, after Indonesia's Forest Area Order and Enforcement Task Force (Satgas PKH) moved against companies linked to nickel trader Arif Kurniawan, a former Glencore trader, according to The Oregon Group, citing Mining.com.au. The metal reached a session high of US$16,415, its strongest level since September 25. Westmetall's LME three-month official settlement for the day was US$16,265, up from US$15,675 on November 4.
The task force has begun taking control of forest land allegedly used unlawfully by companies linked to Kurniawan, as part of a wider crackdown on mining companies in Indonesia. Task force spokesperson Barita Simanjuntak confirmed that the figure identified only as "AK" is Kurniawan. Authorities say an initial review found irregularities in mining governance, licensing and forest use.
Under Presidential Regulation No. 5 of 2025, the task force can reclaim land, impose administrative fines, recover assets and refer evidence for prosecution, as reported by Detik. A 2025 Bloomberg investigation estimated that Kurniawan and his main business partner held interests in at least 20 mining concessions spanning more than 71,000 hectares, and that his businesses handled about one-third of Indonesia's domestic nickel ore trade.
The task force has not confirmed those figures, according to The Oregon Group. Indonesia accounted for about 62% of world nickel mine production in 2024 and an estimated 67% in 2025, according to the U.S. Geological Survey's Mineral Commodity Summaries 2026.
Any disruption to a trader reported to have handled roughly a third of the country's ore therefore carries implications beyond Indonesia's forests. The Kurniawan case sits within a broader Satgas PKH campaign. By 6 October 2026, the Attorney General said the task force had reclaimed about 14,634 hectares of forest used for mining since February 2025, up from about 5,209 hectares across 39 companies by 1 October 2025, according to Tirto and Antara.
Over the same period, Satgas reported more than 6.2 million hectares reclaimed in the palm-oil sector, according to Tirto. An earlier mining case involved about 148 hectares at PT Weda Bay Nickel in Halmahera, North Maluku, which was sealed in September 2025, according to Tempo. Forest enforcement is one of several measures introduced under President Prabowo.
Jakarta revoked four nickel licences in Raja Ampat in June 2025, according to the Ministry of Energy and Mineral Resources (ESDM). It also raised progressive mining royalties under Government Regulation No. 19 of 2025, according to HBT Law, and moved mining production quotas to a one-year approval cycle, according to Antara.
Indonesian producers were already facing tighter mining quotas and rising costs in 2026. Macquarie now expects nickel and nickel-product exports to fall about 6% this year, more than it forecast at the start of the year, and says attention is shifting to the 2027 ore quotas, according to Mining.com.au. The task force has not named the companies or concessions involved, said how many hectares are affected or announced any criminal findings.
Glencore has not been linked to the latest action. The Oregon Group argues that the pattern of stricter government regulation in the world's largest nickel producer could interrupt ore supply and leave more pricing power with producers elsewhere. Whether the affected land returns quickly to legal production will be a key factor in determining whether the supply risk fades.
For now, the nickel price is responding.
Source: theoregongroup.com