Indonesia's Nickel Reference Price Increased by 5.54% in November 2024

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the reference price for Indonesian nickel at US$17,072.14 per dry metric tonne (dmt) in November 2024.

This reference price is 5.54% higher than October 2024's price of US$16,175.23 per dmt.

Compared to the year-to-date (ytd) average, the November 2024 reference price is 4.29% higher than January 2024's price of US$16,368.86 per dmt.

However, compared to the same period last year (year-on-year/yoy), the reference price decreased. The November 2024 reference price fell by 8.03% from November 2023's price of US$18,563.64 per dmt.

This reference price was established through Indonesian Ministry of Energy and Mineral Resources Decree (Kepmen ESDM) Number 301.K/MB.01/MEM.S/2024 concerning the Reference Price for Metal Minerals and Coal for November 2024, on November 18, 2024.

Decarbonization Roadmap: Efforts to Reduce High Nickel Emissions

The government is currently drafting a national industrial decarbonization roadmap, which is part of the National Medium-Term Development Plan (RPJMN) 2025-2029. This roadmap is being developed by the Ministry of National Development Planning/National Development Planning Agency (PPN/Bappenas) in collaboration with the World Resources Institute (WRI) Indonesia.

Febrian Alphyanto Ruddyard, Deputy Minister of PPN/Deputy Head of Bappenas, stated that this roadmap will be integrated into the national development plan. Based on the National Long-Term Development Plan (RPJPN) 2025-2045, Indonesia is committed to becoming a sovereign and sustainable nation by 2045.

Febrian said the roadmap is also designed to address the significant challenges facing Indonesia's nickel industry. Over the past 10 years, downstreaming policies have reportedly doubled the nickel sector's revenue.

"However, this sector is also a significant contributor to greenhouse gas emissions," said Febrian at the Conference of the Parties 29 or COP29 in Baku, Azerbaijan, as quoted from Bappenas' official statement in Jakarta on Tuesday (November 19).

Nizar Marizi, Director of Energy, Mineral, and Mining Resources at the Ministry of PPN/Bappenas, said Indonesia is striving to maximize its nickel potential due to possessing the world's largest reserves.

However, the government must ensure that the resulting economic growth aligns with the national commitment to reduce environmental impact, particularly GHG emissions.

"With a sustainable approach, we can achieve economic growth while still meeting national climate goals," he said.