Indonesia’s Ministry of Energy and Mineral Resources (ESDM) intends to introduce a new nickel ore benchmark price (HPM), potentially raising costs by accounting for cobalt and iron content.

This adjustment, coupled with a proposed export tax on nickel products, foreshadows a more tense global market pricing environment. Although the government may relax mining quotas (RKAB) if prices remain high, actual production often lags behind approved limits due to approval delays.

These regulatory changes coincide with rising energy costs and sulfur shortages, which pose risks to regional output. Some producers with self-sufficient operations remain insulated, but the combination of higher benchmarks and new taxes will likely drive up expenses throughout the global stainless steel and battery supply chains.