Jakarta: PT Vale Indonesia Tbk produced 17,614 metric tons of nickel in matte in the first quarter of 2020, 35 percent higher than production the same period last year.
However, it was 14 percent lower than production in the fourth quarter of 2019 as a result of planned maintenance activities.
"We are confident in our ability to maintain our production levels in 2020,” PT Vale Indonesia CEO and President Director Nico Kanter said in a report on Monday, April 20, 2020.
Global economic decline and the spread of covid-19 in Indonesia are expected to hamper domestic economic growth momentum. Exports in 2020 are predicted to decline on compressed global demand, global supply chain disruptions and low international commodity prices.
Meanwhile, social restrictions to contain covid-19 have eroded private incomes and reduced production, thus lowering domestic demand in the form of household consumption and investment.
Furthermore, domestic economic moderation in Indonesia is projected to peak in the second and third quarters of 2020, mirroring the anticipated global economic contraction and economic impact of covid-19 containment measures.