Indonesia's Nickel Reference Price Falls 5.38% in September 2024

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the benchmark price for nickel at US$15,908.1 per dry metric tonne (dmt) in September 2024.

This figure is down 5.38% from August 2024, which stood at US$16,812.73 per dmt.

Compared to the year-to-date (ytd), the September 2024 benchmark price decreased by 2.81% from January 2024's US$16,368.86 per dmt.

A decrease was also observed year-on-year (yoy). The September 2024 benchmark price fell by 23.62% from September 2023's US$20,827.73 per dmt.

This benchmark price was established through Indonesian Minister of Energy and Mineral Resources Decree (Kepmen ESDM) Number 231.K/MB.01/MEM.B/2024 concerning the Benchmark Price for Metal Minerals and Coal for September 2024, on September 20, 2024.

President Joko Widodo (Jokowi) claims that the nickel downstreaming policy has led to a significant surge in state revenue. In 2015, Indonesian nickel exports were valued at Rp45 trillion, but after the implementation of the downstreaming policy, this value soared to Rp520 trillion in 2023.

“Some people have said to me, ‘Sir, the companies are the ones profiting, what do the people get?’ Don't be mistaken, we collect taxes from there, corporate taxes, employee taxes, export duties, export taxes, export levies, not to mention non-tax state revenues; it's enormous,” Jokowi said in his opening remarks at the 22nd Indonesian Economic Scholars Association (ISEI) Congress and 2024 National Seminar held at the Alila Hotel, Surakarta, on Thursday, September 19, 2024, as quoted from the website presidenri.go.id.

Besides nickel, Jokowi also highlighted the development of downstreaming in the mineral sector, such as copper and bauxite. Two large smelters in Amman-Sumbawa and Freeport-Gresik will soon be operational, with investments reaching Rp50-60 trillion.