Indonesian Nickel Ore Royalty Policy Sparks Controversy Over Tax Rate Exemption

Published: Apr 22, 2025 11:08

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【SMM News】SMM, April 22 – According to the PNBP (Non-Tax State Revenue) policy issued by the Indonesian government on April 11, all nickel ores will uniformly apply a 14% royalty. However, the policy has sparked controversy at the implementation level: if low-grade nickel ore (Ni <1.5%) can meet the certification standards for raw materials of EV power batteries, whether there is a possibility of reducing its applicable tax rate to 2%. Confirmed by the Indonesian National Economic Committee, as of now, no mining company nationwide holds an IUP (Mining Business License) that meets this exemption condition, indicating that this clause currently lacks an implementation basis in Indonesia.

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