Govt set to implement new nickel benchmark price
Tuesday, March 3 2026 - 07:35 AM WIB
By Calvin Purba
The Indonesian government is finalising a new ministerial regulation to revise the mineral benchmark price (HPM) formula for nickel, as part of broader efforts to support domestic prices following a cut in production quotas.
The Indonesian Nickel Miners Association (APNI) said the government has approved the proposed revision, with implementation expected in March.
“When the government lowered the quota, it also approved APNI’s request to revise the HPM price,” APNI Secretary General Meidy Katrin Lengkey said during an industry event on Monday.
She did not disclose details of the new pricing formula.
Read also : Indonesia risks oversupply in Class 2 nickel: Expert
Cecep Mochammad Yasin, Director of Mineral Business Development at the Ministry of Energy and Mineral Resources (MEMR), confirmed that the new formula is still being finalised.
“It is still under formulation,” Cecep told Petromindo.com on Monday.
The revision of the HPM formula was initiated alongside the reduction in the 2026 nickel ore production quota to help strengthen domestic ore prices.
The ministry has set the 2026 nickel ore output quota at around 260–270 million tonnes under the new Work Plan and Budget (RKAB), significantly lower than the 379 million tonnes approved for 2025.
The proposed cut is aimed at supporting a recovery in global nickel prices, which have been pressured by oversupply. As the world’s largest nickel producer, Indonesia plays a key role in shaping global market dynamics.
Editing by Reiner Simanjuntak