Indonesian President Prabowo Subianto recently instructed Minister of Energy and Mineral Resources Bahlil Lahadalia to identify new sources of revenue from the mining sector, with adjustments to the Mineral Benchmark Price (HPM), including nickel prices, emerging as one of the options under consideration.
Speaking after attending a limited meeting in Hambalang, Bogor, Minister Bahlil stated that the President emphasized the need to prioritize national interests in managing natural resources, which are strategic national assets. Following this directive, the Ministry of Energy and Mineral Resources has been tasked with exploring new revenue-generating mechanisms to compensate for the limited contributions from existing revenue sources.
One concrete measure currently under study is raising the HPM for nickel. Bahlil noted that through this adjustment, the government aims to balance coal production with market supply and demand, while ensuring the continued development of downstream industries and advancing the energy transition.
He further explained that the government's ideal objective is to achieve reasonable prices and moderate production volumes, with the core principle being to avoid selling the country's natural resources at excessively low prices, thereby keeping supply-demand dynamics within a healthy range.
Written by Cora Ji, jiruyan@mysteel.com
