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Indonesia’s sweeping nickel downstreaming policy, launched in 2020, is entering a more consequential phase. Having successfully halted raw ore exports, the government is now preparing to deploy a more assertive instrument: an additional export levy on processed nickel products.

Energy and Mineral Resources Minister Bahlil Lahadalia, who also oversees investment, has made clear that the move is not merely about boosting state revenue but about navigating mounting global economic uncertainty and growing saturation in the base metals market.

The proposal is a direct response to the oversupply of lower-grade nickel products — such as nickel pig iron and ferronickel — which have flooded global markets from Indonesia’s rapidly expanding smelting sector.

This glut has depressed international nickel prices, eroding royalties and state income. From a mining economics perspective, the policy represents a large-scale market correction aimed at safeguarding the value of Indonesia’s strategic resources from being undervalued internationally.

The levy will target nickel derivatives produced through pyrometallurgical processes, particularly nickel pig iron and ferronickel, whose nickel content remains relatively low to mid-range.

Read more at: https://asiatimes.com/2026/04/indonesia-bets-on-nickel-levy-to-break-its-china-habit/