Draft Permen on the Reformulation of Export Duty (Tax) on Nickel

The Government is currently drafting new regulations in the mining sector, particularly concerning export duty policies and the imposition of a windfall tax on nickel commodities. This regulation is intended to replace Regulation of the Minister of Finance (“PMK”) No. 106/PMK.04/2022 on the Imposition of Export Duties Tariffs on Exports of Processed Metal Mineral Products (“PMK 106/2022”).

“It is still under discussion with the Ministry of Energy and Mineral Resources; however, it is certain that the measure will be sufficient to offset the increase in subsidies under our State Revenue and Expenditure Budget (Anggaran Pendapatan dan Belanja Negara),” stated the Minister of Finance, Purbaya Yudhi Sadewa.

In addition, the Government is preparing measures to promote downstream processing of nickel, particularly through the provision of incentives for the electric vehicle battery industry. On the other hand, the imposition of export duties is considered capable of strengthening Custom and Excise’s oversight of under-invoicing practices and illegal exports, which have thus far proven difficult to monitor.