Indonesian Nickel Reference Price Drops 8.05% in November 2023, Lowest Since 2022

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the benchmark price for Indonesian nickel at US$18,563 per dry metric tonne (dmt) in November 2023.

This benchmark is down 8.05% compared to October 2023, which was US$20,190 per dmt. The November benchmark is also the lowest since 2022, as shown in the graph.

Since the beginning of 2023, the nickel benchmark price has only increased three times. These increases occurred in February 2023 (US$28,444 per dmt), June 2023 (US$23,317 per dmt), and September 2023 (US$20,827 per dmt). Outside of these three months, nickel prices have declined.

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 is included in the Decree of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 394.K/MB.01/MEM.B/2023 concerning the Benchmark Price of Metal Minerals and the Benchmark Price of Coal for November 2023, dated November 10, 2023.

Reviewing the plan for a moratorium on permits for Class II nickel smelters

Citing *Katadata*, the Ministry of ESDM is planning to restrict the issuance of permits for Class II nickel smelting projects. However, this plan still needs to be discussed with the Ministry of Industry (Kemenperin).

"Most of the permits are issued by the Ministry of Industry," said Minister of ESDM Arifin Tasrif, when met by *Katadata* at the Ministry of ESDM on Friday (10/11/2023).

Previously, the Ministry of ESDM considered the supply and demand for nickel ore to ensure that existing smelters receive sufficient nickel ore supply for the sustainability of their operations.

Arifin ensured that the Class II nickel moratorium would not be hampered by the Ministry of Industry. Not only for supply, Arifin also claims that the nickel smelter moratorium aims to boost electric vehicle (EV) batteries.

"That's our main capital. We must utilize the main capital of minerals that can help with clean energy electrification," he said.

In addition to supply and EV batteries, the moratorium is also intended to maintain a balance between the supply and demand for nickel ore to prevent Indonesia from becoming a nickel ore importer in the future.

(See also: Indonesian Nickel Benchmark Price Down 3.05% in October 2023)