Indonesia's Ministry of Energy and Mineral Resources (ESDM) plans to finalize the revision of the formula for determining the Mineral Benchmark Price (HPM) within April 2026, incorporating associated minerals such as cobalt and iron into the calculation. The move aims to better reflect the economic value of byproduct minerals and support a reasonable upward adjustment of the benchmark price.
Minerals and Coal Director General Tri Winarno recently stated in Jakarta that, following a proposal from the Indonesian Nickel Miners Association (APNI), the government is working on valuing cobalt and iron, with the relevant factors to be included in the calculation formula, ultimately driving up the benchmark price. He revealed that the study is nearly complete and is expected to be officially implemented within the month.
Tri further explained that the adjustment focuses on the pricing formula itself, not the frequency of price announcements. Currently, the Reference Mineral Price (HMA) will continue to be set twice a month according to existing procedures, based on global market prices from the London Metal Exchange (LME) and other sources, with a certain correction factor. The government is studying the optimal method for incorporating byproduct mineral components into the calculation, including assessing their impact on mining costs and added value.
Previously, Energy and Mineral Resources Minister Bahlil Lahadalia also stated that the government's push to raise the mineral benchmark price aims to increase state revenue and provide clearer operational certainty for mining companies.
Written by Cora Ji, jiruyan@mysteel.com
