Indonesia's Nickel Reference Price Falls 3.05% in October 2023

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the Indonesian nickel reference price at US$20,190 per dry metric tonne (dmt) in October 2023.

This price is down 3.05% from the September 2023 reference price of US$20,827 per dmt. The October 2023 reference price is also the lowest since the beginning of 2023.

Since the beginning of 2023, the nickel reference price had surged in February 2023, reaching US$28,444 per dmt.

Although it has fallen monthly since that peak, the nickel reference price strengthened in September 2023 to US$20,827.

This price determination is stipulated in the Decree of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 335.K/MB.01/MEM.B/2023 concerning the Reference Price of Metal Minerals and the Reference Price of Coal for October 2023, dated October 11, 2023.

Prediction of 100% Increase in Nickel Product Export Value

Citing *Katadata*, Coordinating Minister for Maritime and Investment Affairs, Luhut Binsar Pandjaitan, projects that the export value of nickel derivatives could reach US$60 billion or approximately Rp927.84 trillion in 2025.

This is due to the downstream processing of nickel into electric vehicles (EVs). Luhut explained that the export value of nickel and its derivatives year-to-date has reached US$19.47 billion or equivalent to Rp301 trillion. Last year, the export value of nickel and its derivatives reached US$34.28 billion or Rp530.1 trillion.

"The majority of nickel derivatives are still iron and steel. In 2025-2026, it may become lithium batteries and electric vehicles, the export value of nickel and its derivatives could be US$50 billion to US$60 billion," said Luhut at the Katadata Sustainability Action for The Future Economy Forum (SAFE) 2023 in the Grand Ballroom, Jakarta, Tuesday (26/9).

Luhut said that the export value of nickel and its derivatives was only US$3 billion in 2015. This means Luhut projects that the export value of nickel and its derivatives could increase up to 20 times as soon as 2025 due to downstream processing.

Luhut claims that the downstream processing program has made the national economy better and more stable. This is reflected in the equitable distribution of development within the country.

(See also: Nickel: Downstreaming, Potential, and Increasing Poverty in Mining Regions 2023)