[SMM Nickel Flash News] Indonesia Reviews PP 19/2025 Amendment, Nickel-Related Royalties May Rise

Published: May 8, 2026 16:42

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On May 8, Indonesia’s Directorate General of Mineral and Coal under ESDM held a public consultation on the proposed PP 19/2025 amendment, covering royalty adjustments for several minerals.

For nickel ore, the proposal lowers the lowest HMA threshold from below $18,000/mt to below $16,000/mt, and the top threshold from $31,000/mt and above to $26,000/mt and above. The structure would expand from five to six brackets, with rates ranging from 14% to 19%. Based on today’s nickel HMA of $17,802/mt, the applicable nickel ore royalty would rise from 14% to 15% if implemented. The proposal also adds a 2% royalty on cobalt in nickel matte and non-nickel smelting products, and a 2.5% royalty for Alloy Pig Iron. Whether this affects mainstream NPI depends on Indonesia’s final product classification.

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