An Indonesian policy analyst urged the Philippines to adopt a long-term nickel strategy involving production quotas, export duties, and smelter development. Abdurrahman Arum, executive director of Transisi Bersih, stated that such a strategy would strengthen the Philippines' position in the global supply chain.

"The first pillar should be production control," Arum said. He added, "The Philippine government should establish a national production quota mechanism."

"The second pillar should be progressive export duties on nickel ore," Arum said. Regarding the third component, he stated, "The third pillar should be smelter development without excessive reliance on tax holidays and other fiscal giveaways."

"The Philippines needs to rethink its nickel mining policy," Arum said. He continued, "The Philippines, therefore, needs a long-term nickel strategy that is carefully designed and implemented with discipline."

Arum noted, "If both countries control production and reduce dependence on cheap raw-material exports, Southeast Asia's bargaining power in the global nickel supply chain will increase." The Philippines is one of Southeast Asia's largest nickel producers. Philippine nickel ore has been an important source of supply for Asia's processing industry, particularly for China and Indonesia. Indonesian smelters have begun looking to the Philippines for alternative feedstock as Indonesia tightens its domestic ore supply and production.

Nickel is a strategic input for stainless steel, superalloys, high-performance machinery, turbines, medical equipment, aerospace technology, robotics, batteries, electric vehicles and green industrial supply chains.

The Bangko Sentral ng Pilipinas expects the Philippines to experience a weaker external position this year than previously anticipated as the conflict in the Middle East weighs on dollar inflows from investments and overseas remittances. Separately, home prices in the Philippines, measured by the residential property price index, edged up 4.5 percent from a year earlier in the first quarter of 2026, before the Middle East crisis weighed on the volatile market.