The Indonesian Nickel Miners Association (APNI) has disclosed that the Ministry of Energy and Mineral Resources (ESDM) is set to revise the benchmark price formula for nickel commodities in early 2026. APNI noted that one key revision involves the government beginning to treat cobalt--a byproduct mineral of nickel--as an independent commodity and imposing royalties on it.
APNI Secretary-General Meidy Katrin Lengkey stated in an interview in South Jakarta that the revised HPM formula is expected to be issued in January or February 2026. She confirmed that the new formula will benefit miners while continuing to enhance state revenue from taxes. Meidy acknowledged that the specifics of the revised nickel HPM formula cannot yet be disclosed but indicated that in the future, byproduct minerals such as cobalt may be subject to royalties once classified as independent minerals.
Previously, Meidy proposed alternative measures for the government's adjustment of royalty rates in the mining sector to protect the interests of domestic mining industry players. According to Meidy, the government could apply progressive tax rates to increase royalties on base metal minerals but should particularly implement a new royalty system for byproduct minerals that have not previously been subject to mining taxes.
In the battery industry, cobalt holds significant economic value as a mineral associated with nickel. However, thus far, the Indonesian government has only adopted the benchmark mineral price (HMA) for cobalt without factoring in the pricing of raw materials or ore. Meidy explained that if cobalt can be accounted for and categorized as a byproduct mineral, royalties of 2% or 10% could be levied. This would provide the state with an additional revenue stream--a substantial one, given that cobalt is priced twice as high as nickel, despite its content in nickel ore being only about 0.1%.
Additionally, APNI has proposed updating the HPM formula to incorporate the economic value of iron content in laterite ore and cobalt content in limonite, which until now have not been realized.
Written by Cora Ji, jiruyan@mysteel.com
