Indonesia's Nickel Reference Price Increases Slightly by 1.69% in the Second Period of March 2025

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the benchmark price for Indonesian nickel at US$15,534.62 per dry metric tonne (dmt) for the second period of March 2025.

This benchmark represents a slight increase of 1.69% compared to the first period of March 2025, which was US$15,276.33 per dmt.

However, compared to the same period last year (year-on-year/yoy), it decreased by 3.03% from the full period of March 2024, which was US$16,021.67 per dmt.

This benchmark price was established through Indonesian Minister of Energy and Mineral Resources Decree (Kepmen ESDM) Number 92.K/MB.01/MEM.B/2025 concerning the Benchmark Price of Metal Minerals and Coal for the Second Period of March 2025, on March 14, 2025.

(Read also: Indonesian Nickel Prices Remain Relatively Unchanged in Early March 2025)

Nickel Royalty Increase up to 3%

The government is finalizing revisions to two government regulations (PP), namely PP Number 15 of 2022 and PP Number 26 of 2022, to maximize Non-Tax State Revenue (PNBP) from the mineral and coal (minerba) sector.

One of the main changes in this revision is the increase in royalty rates for gold and nickel. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that this change does not only target gold and nickel but also coal and several other mineral commodities.

This was conveyed after a meeting with President Prabowo Subianto at the Presidential Palace, Jakarta, on Thursday (20/3/2025). "The changes are almost final, just a little more," said Bahlil.

Regarding the amount of the royalty increase, Bahlil mentioned a range of 1.5% to 3%, depending on the commodity price in the global market.

"It depends and it's fluctuating. If the price goes up, we increase it to the highest. If the price goes down, we can't impose a large tax on businesses because we also need businesses to grow," he said.

Bahlil explained that this increase aims to maintain market balance, as the prices of gold and nickel are currently relatively high.

"The price of nickel is also good now, the price of gold is good. It's not fair if the price goes up, but the state doesn't get additional income. So, this is to maintain balance," he said.

Bahlil also emphasized that all companies, including major players in the minerba sector such as PT Freeport Indonesia, will be subject to the royalty increase after the new regulation comes into effect.

"According to the rules, we impose the highest tax," said Bahlil.

(Read Katadata: Bahlil Will Increase Gold and Nickel Royalty Rates by up to 3%)