Indonesia's Nickel Price Falls 3.15% in Early May 2025

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the benchmark price for Indonesian nickel at US$15,049.23 per dry metric tonne (dmt) for the first period of May 2025.

This benchmark is down 3.15% from the second period of April 2025, which was US$15,539.69 per dmt. This decrease has occurred for two consecutive periods.

Compared to the same period last year (year-on-year/yoy), the benchmark price at the beginning of May 2025 also plummeted 13.86% from the full period of May 2024, which was US$17,472.38 dmt.

This benchmark price was set through Indonesian Ministry of Energy and Mineral Resources Regulation (Kepmen ESDM) Number 169.K/MB.01/MEM.B/2025 concerning the Benchmark Price of Metal Minerals and the Benchmark Price of Coal for the First Period of May 2025, on April 29, 2025.

**Nickel Prices Slump**

As reported by *Katadata*, the Ministry of Energy and Mineral Resources (ESDM) will review the impact of the implementation of the mineral royalty increase stipulated in Government Regulation No. 19 of 2025. This is because the mining industry recorded a contraction in the first quarter of this year.

The Director General of Minerals and Coal at the Ministry of ESDM, Tri Winarno, explained that the weakening performance of the mining industry was caused by a decrease in demand and nickel prices in the global market.

Statistics Indonesia (Badan Pusat Statistik) recorded that the mining industry was the only sector to experience negative growth of 1.23% year-on-year in January-March 2025.

"The decline is due to decreased global nickel demand and its price also fell in the export market. Well, what can we do?" said Tri at the DPR Building, Tuesday (6/5/2025).

Tri explained that Indonesia supplies 65% of the global nickel needs. Furthermore, 65% of Indonesia's total exports, or 42.25% of the global nickel supply, is in the form of stainless steel to China.

He stated that the weakening of China's economic growth has caused a decrease in local stainless steel demand. This condition has led to an oversupply of nickel domestically, ultimately driving down global prices.

(Read *Katadata*: [Nickel Prices Slump, Government Reviews Impact of Mining Royalty Increase Regulation](https://katadata.co.id/berita/energi/681aa9735f3a5/harga-nikel-lesu-pemerintah-kaji-dampak-aturan-kenaikan-royalti-tambang))