Indonesia's Ministry of Energy and Mineral Resources is accelerating the calculation of the export duty formula for nickel pig iron (NPI), aiming to further increase state revenue by optimizing income from downstream nickel product exports. Energy and Mineral Resources Minister Bahlil Lahadalia recently stated in Jakarta that the export duty scheme for ferronickel products is still under review, with specific details yet to be finalized.
The government had previously planned to implement export duties on coal and nickel starting April 1, 2026. However, Bahlil revealed that the policy is currently awaiting the results of a joint study between the Ministry of Energy and Mineral Resources and the Ministry of Finance, leaving the exact timing uncertain.
Regarding coal Work Plans and Budgets (RKAB), Bahlil confirmed that the policy direction remains unchanged, with only moderate adjustments to be made. These adjustments will prioritize domestic demand and adhere to the principle of supply-demand balance: increasing production when prices are favorable, and scaling back based on market demand when prices decline.
For nickel RKAB quotas, the Ministry of Energy and Mineral Resources will similarly apply the supply-demand balance principle, allocating production based on smelter demand to prevent price drops caused by oversupply. Bahlil also confirmed that the government will raise the reference mineral price (HMA) for nickel to help maintain market price stability.
Previously, Indonesian Finance Minister Purbaya Yudhi Sadewa had indicated that the coal export duty regulations were planned to take effect on April 1, though actual implementation would depend on the final outcomes of inter-ministerial coordination meetings. While the export duty rates for coal and nickel have received in-principle approval from the President, the specific rates have not yet been announced as technical details continue to be refined.
Written by Cora Ji, jiruyan@mysteel.com
