Indonesia's Nickel Reference Price Closes 2023 Down 4.9%

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the benchmark price for Indonesian nickel at US$17,653.33 per dry metric tonne (dmt) in December 2023.

This price is down 4.9% compared to the November 2023 benchmark of US$18,563.54 per dmt. The December 2023 price is also the lowest since the beginning of 2023.

Since January 2023, the nickel benchmark price has only increased three times by the end of the year. Specifically, in February 2023 it was set at US$28,444 per dmt, in June 2023 at US$23,317 per dmt, and in September at US$20,827 per dmt. Outside of these three months, the nickel price was predominantly declining.

The Ministry of ESDM stated that this nickel benchmark price is a cash seller and settlement price published by the London Metal Exchange (LME).

The nickel benchmark price was set through Indonesian Minister of Energy and Mineral Resources Regulation Number 447.K/MB.01/MEM.B/2023 concerning the Benchmark Price of Metal Minerals and Coal for December 2023, on December 20, 2023.

WTO Appeal and Ongoing Indonesian Nickel Downstreaming

According to *Katadata*, the European Union's challenge to Indonesia's nickel export ban is still under appeal at the World Trade Organization (WTO). This is considered advantageous for Indonesia, as the lack of a final decision allows the policy to continue supporting downstreaming.

"For Indonesia, it's good because without a final decision, meaning a final decision at the appeal level, any policy can still be continued," said Bara Krishna Hasibuan, Special Staff to the Minister of Trade for International Agreements, in Timika, Central Papua, on Sunday (December 3, 2023).

Bara stated that while awaiting the final result of the appeal filed in December 2022, Indonesia can continue its nickel downstreaming policy.

Furthermore, to proceed with the WTO appeal, an Appellate Body must be formed and requires the approval of all members. According to Bara, the United States has not yet given its approval.

The Appellate Body is expected to be formed in 2024. However, the appeal hearing cannot be immediately conducted due to a waiting list.