Analysis of Increases in Ferronickel Production in An Indonesian Company Due to The Russian – Ukraine War

A number of commodity prices, such as oil and coal, strengthened in line with the heating up of geopolitical tensions between Russia and Ukraine which occurred in early 2022. One of the impacts of this event resulted in an increase in ferronickel production costs at a company located in Indonesia. This company runs businesses related to the mining sector, such as nickel, gold, bauxite and coal. In the process of processing raw materials into products or finished goods that are ready for sale, a company needs to carry out several stages. The production process of processing nickel ore into ferronickel raises costs due to several factors. Factors of production such as raw materials, labor, capital and others are important characteristics in determining the category of a company's production costs. The increase in the prices of crude oil and coal commodities due to the events of the war in Russia and Ukraine had an impact on the fuel usage figures in the cost of ferronickel production. The focus of the issues studied in this article is how big the impact of the existence of the ferronickel commodity sector is on national and global economic, political and social conditions, so that it is expected to be a consideration for the steps taken by companies in reducing production costs to anticipate price volatility, both selling prices and the purchase price of ferronickel raw materials in the commodity market.