On October 29, the Indonesian Nickel Miners Association (APNI) exposed that a large number of nickel smelters in Indonesia are currently purchasing nickel ore at prices below the Mineral Benchmark Price (HPM), squeezing miners' profits and jeopardizing state revenue.
Meidy Katrin Lengkey, Secretary-General of APNI, pointed out that the actual signed CIF (Cost, Insurance, and Freight) contract prices are currently even lower than the HPM FOB (Free on Board) benchmark, yet miners still have to pay royalties based on the current high HPM. She speculated that this is because the smelters' own production costs are higher than their product selling prices, leaving them "struggling" and forcing them to pass the pressure downstream.
Meidy warned that such low-priced transactions not only compress the survival space of miners but also directly affect corporate income tax (PPh Badan), leading to a potential shortfall in state non-tax revenue (PNBP). Therefore, APNI calls on the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM) to issue a circular as soon as possible to standardize market trading behavior and ensure that both buyers and sellers strictly comply with HPM pricing and tax payment regulations.
