At the 2023 SMM Indonesia Nickel and Cobalt Industry Chain Conference meeting from May 30-31 in Jakarta, Indonesia, Mr. Septian Hario Seto, Deputy Minister of Maritime Affairs and Investment Coordination/Mining Affairs of Indonesia, said that Indonesia has a large reserve of key metals for lithium batteries.
Indonesia has successfully developed its nickel industry into a steel and battery material industry by encouraging investment and incentives policies to create a comprehensive and highly competitive industrial ecosystem.
Seto also said that Indonesia needs to establish its own nickel price index.
The new index can be used in national policies such as Indonesia's export tax and domestic nickel ore pricing.
The importance of establishing the Indonesian nickel price index:
1. There is a spread between LME nickel prices and spot NPI prices which ranged from 0% to 20%, reaching as high as 40% in early 2022.
2. As an important player in the nickel industry, Indonesia needs to establish its own index to ensure that the nickel product market does not have only one reference.
3. The new index can be used in domestic policies such as Indonesia's export tax and domestic nickel ore pricing formula.
In addition, the Indonesian government also proposed to postpone the levy of export duties on nickel products. Previously, the Indonesian government had stated that it would impose export duties on NPI and high matte nickel.
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