Indonesia eyes higher nickel benchmark, export taxes on processed products to boost revenue

Indonesia is preparing to raise its benchmark mineral price for nickel while also studying export levies on processed nickel products, as the government seeks to increase revenue from the mining sector, Energy and Mineral Resources Minister Bahlil Lahadalia said.

The planned increase in the Benchmark Price (HPM) was discussed during a meeting with President Prabowo Subianto at Hambalang, west Java on March 25.

“Most likely, the HPM for nickel will be increased,” Bahlil said.

The policy is aimed at capturing greater economic value from Indonesia’s mineral resources, particularly as global demand for nickel remains strong.

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In parallel, the government is reviewing plans to impose export duties on processed nickel products, including nickel pig iron (NPI), ferronickel, nickel matte and mixed hydroxide precipitate (MHP).

Bahlil said the government is still calculating the appropriate tariff structure and formulation for the proposed export levies, which are intended to create additional state revenue sources.

Editing by Alexander Ginting