Indonesia's ministry of energy and mineral resources (ESDM) on 8 March proposed to change the non-tax state revenue or Pendapatan Negara Bukan Pajak (PNBP) for various nickel products. But other details are yet to be confirmed.
The ESDM suggested revising the PNBP royalty rate for nickel ore from a fixed 10pc to a range of 14-19pc, depending on the Harga Mineral Acuan (HMA) nickel price, which is the reference price for nickel ore.
The ESDM also proposed revising the PNBP royalty rates for ferronickel and nickel pig iron (NPI) to a range of 5-7pc depending on the HMA, from a fixed rate of 2pc and 5pc, respectively.
Nickel matte's windfall profit has also been removed under the new proposal, with the fixed 2-3pc royalty rate to be revised to 4.5-6.5pc depending on the HMA.
The market continues to closely monitor the developments of Indonesia's nickel regulations, following the modification to the HMA price, an extension to the holding period of export earnings onshore and a potential RKAB work plan curtailment.
| Royalty rates | % |
| HMA nickel ($/t) | Proposed changes (%) |
| Nickel ore | |
| < 18,000 | 14.0 |
| 18,000 < 21,000 | 15.0 |
| 21,000 < 24,000 | 16.0 |
| 24,000 < 31,000 | 18.0 |
| ≥ 31,000 | 19.0 |
| Ferronickel and NPI | |
| < 18,000 | 5.0 |
| 18,000 < 21,000 | 5.5 |
| 21,000 < 24,000 | 6.0 |
| 24,000 < 31,000 | 6.5 |
| ≥ 31,000 | 7.0 |
| Nickel matte | |
| < 18,000 | 4.5 |
| 18,000 < 21,000 | 5.0 |
| 21,000 < 24,000 | 5.5 |
| 24,000 < 31,000 | 6.0 |
| ≥ 31,000 | 6.5 |
| ESDM | |
