Harita Nickel Sees Stronger U.S. Dollar Boosting Earnings as NCKL Targets Higher Nickel Output

JAKARTA, Investortrust.id — PT Trimegah Bangun Persada Tbk (NCKL), better known as Harita Nickel, says the strengthening U.S. dollar is providing an unexpected earnings tailwind as Indonesia's integrated nickel producer accelerates mining output and expands its position in the global electric vehicle supply chain.

The company expects stronger nickel ore production throughout 2026 while continuing to optimize its integrated mining and processing operations.

Indonesia is the world's largest nickel producer and a critical supplier to the global electric vehicle battery industry. As most nickel exports are priced in U.S. dollars, a stronger greenback can significantly improve earnings for export-oriented producers despite pressure on the domestic currency.

Harita Nickel's outlook also offers investors a window into how Indonesian resource companies are navigating volatile commodity prices and foreign exchange movements.

Dollar Strength Boosts Export Earnings

Chief Financial Officer Suparsin said nearly all revenue from Harita Nickel's processing business comes from exports and is received in U.S. dollars, making rupiah weakness a net positive for the company.

"This is actually beneficial for the company because virtually 100% of revenue from our nickel processing business comes from exports, and sales proceeds are received in U.S. dollars. As the U.S. dollar strengthens, the company benefits," Suparsin said during Harita Nickel's Public Expose in Jakarta on Tuesday.

The same dynamic also benefits the company's mining operations, even though domestic nickel ore sales are settled in rupiah.

According to Suparsin, Indonesia's official mineral benchmark price is linked to international prices on the London Metal Exchange (LME) before being converted into rupiah.

"As we know, the mineral benchmark price follows LME prices. It is priced in U.S. dollars and then converted into rupiah. So, in conclusion, a stronger dollar benefits the company," he said.

Mining Output Set to Climb in 2026

Harita Nickel expects mining activity to increase substantially this year as it raises nickel ore sales volumes.

"We will sell more nickel ore, so we expect mining output in 2026 to increase significantly compared with last year," Suparsin said.

He added that nickel mining delivers higher operating margins than processing because production costs are lower. However, processed nickel products still generate substantially greater revenue due to their much higher selling prices.

"Mining margins are higher because production costs are lower than processing. However, in absolute value, mining revenue is smaller because nickel ore sells at a much lower price per ton than processed nickel products," he said.

Shareholders Back Growth Strategy

Harita Nickel also held its 2025 Annual General Meeting of Shareholders, where investors approved all proposed resolutions.

Corporate Secretary Rafika Fazrin said the approvals reflect shareholder support for the company's long-term growth strategy.

"Shareholder approval of all AGM resolutions reflects strong support for the company's strategic direction. This confidence provides an important foundation for Harita Nickel to continue executing its corporate agenda in a disciplined, transparent manner while creating sustainable long-term value," Rafika said.

She said the company remains focused on strengthening operational fundamentals, improving efficiency, ensuring reliable supply, and optimizing its integrated nickel value chain despite challenging global industry conditions.

Harita Nickel is also completing several strategic projects, including a quicklime production facility designed to strengthen supply chain integration and improve long-term operational efficiency.

Alongside its expansion plans, the company said it will continue integrating environmental, social and governance (ESG) principles into its operations through responsible mining practices, decarbonization initiatives, biodiversity protection, stronger supply chain governance, and community development programs around its mining operations.

"Harita Nickel will continue growing with discipline while balancing business performance, social responsibility and environmental stewardship. We believe today's strong foundation will create sustainable long-term value for Indonesia and all stakeholders," Rafika said.