Nickel Royalty Rates from the Indonesian Government since 2022

The Indonesian government is set to increase nickel royalty rates. The process is in its final stages of revising 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.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that these changes will not only target nickel but also gold, coal, and several other mineral commodities.

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

"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.

(Read also: [Indonesian Nickel Reference Price Slightly Increases by 1.69% in the Second Period of March 2025](https://databoks.katadata.co.id/agroindustri/statistik/67dd0f16ca5d2/harga-nikel-acuan-ri-naik-tipis-169-pada-periode-ii-maret-2025))

The government previously set nickel royalty rates for non-tax state revenue (PNBP) through Government Regulation (PP) number 26/2022 concerning the types and rates of PNBP applicable to the Ministry of Energy and Mineral Resources.

This regulation sets the tariff for nickel ore per ton at 10% of the price. The government also sets rates for nickel refining products and windfall profits from unexpected commodity price surges. Details are as follows:

Nickel Ore

* Nickel ore per ton: 10% of the price
* Nickel ore with Ni content ? 1.5% as raw material for battery-based electric vehicles per ton: 2% of the price

Refined Products

* Nickel pig iron (NPI) per ton: 5% of the price
* Nickel matte/ferronickel (FeNi)/nickel oxide/nickel hydroxide/nickel MHP/nickel HNC/nickel sulfide/cobalt oxide/cobalt hydroxide/cobalt sulfide/chromium oxide/chromium metal/manganese oxide/magnesium oxide/magnesium sulfate per ton: 2% of the price
* Nickel metal per ton: 1.5% of the price

Windfall profit for nickel matte > US$21,000/ton per ton: 1% of the price.

(Read also: [Comparison of Royalty Rates in the World's Nickel-Producing Countries](https://databoks.katadata.co.id/pertambangan/statistik/67e123e60343f/intip-perbandingan-tarif-royalti-negara-penghasil-nikel-dunia))