Indonesia's Nickel Product Royalty Policy Finally Implemented, Detailing the Progressive Changes in Tax Rates

On April 11, 2025, the President of Indonesia officially signed a new policy on nickel products, which will take effect on April 26. The policy primarily adjusts the royalties for nickel ore, nickel matte, NPI, and ferronickel products, with the royalties for each nickel product to be dynamically adjusted based on the benchmark price HMA. The tax rate for nickel ore was adjusted from a fixed 10% to 14%-19%, the tax rate for nickel matte was adjusted from 2% to 3.5%-5.5%, the tax rate for ferronickel was adjusted from a fixed 2% to 4%-6%, and the tax rate for NPI was adjusted from a fixed 5% to 5%-7%.