ESDM to Issue New Regulation Amending Nickel HPM Variables

The Ministry of Energy and Mineral Resources (Kementerian Energi dan Sumber Daya Mineral – “ESDM”) will issue a new Ministerial Regulation (Permen) concerning amendments to the reference price for nickel commodities. Director General of Mineral and Coal, Tri Winarno, stated that the amendment follows input from business associations that consider the current reference price to be no longer relevant to the increasing capacity for processing nickel ore.

“Hopefully it will be finalized soon,” Tri told Hukumonline.

The new regulation will target the variables of the Mineral Benchmark Price (Harga Patokan Mineral – “HPM”), particularly for nickel commodities. Tri explained that at least two HPM variables for nickel will be revised, namely the Mineral Reference Price (Harga Mineral Acuan – “HMA”) and the Correction Factor.

In addition, Tri confirmed that the imposition of royalties on associated minerals such as cobalt will also form part of the material regulated under the new ministerial regulation. “There will be a correction factor,” he added.