Introduction
Following the previous explanation of Government Regulation No. 28 of 2025 (PP 28/2025) on the "Risk-Based Implementation of Business Licensing," issued on June 5, 2025, SMM attended the "FINI Coffee Morning" event organized by the Indonesian Nickel Smelting Association (FINI). The event featured Dr. Setia Diarta, M.T., Director of the Metal, Machinery, Transportation Equipment, and Electronics Industries (ILMATE) at the Ministry of Industry, with participation from stakeholders from various smelters across Indonesia.
I. Why Has This News Garnered Recent Attention?
Although PP 28/2025 was issued in June 2025, the government system provided a four-month transition period. Consequently, from October to November, smelters across Indonesia began receiving notifications from the Online Single Submission (OSS) system, used for submitting Industrial Business License (IUI) applications. The notifications require enterprises to submit a written statement confirming that they will not produce MHP, FeNi, NPI, or nickel matte.
However, the OSS application system is not yet fully stable, frequently experiencing instability and crashes, which has affected the submission process.
II. Key Discussion Points (Presented by Mr. Eko Widodo, Head of the Business Licensing Verification Team for the Metal Industry/ILMATE),
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For smelters that have already entered the construction phase, the Indonesian Nickel Smelting Association (FINI) will assist in submitting applications to the government to seek exemptions from the new regulation, as these projects commenced construction before the regulation was issued. When submitting relevant supporting documents through the OSS system, enterprises should include a declaration confirming that construction started before October 2025, specifying the exact commencement date.
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For smelters still in the land acquisition phase or those that have not yet started construction, obtaining an exemption will be more challenging.
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For enterprises planning to build more downstream facilities, such as nickel sulphate or battery materials plants, but still constructing and operating NPI, FeNi, nickel matte, or MHP smelters under different company names, these will still be considered as two separate corporate structures. Therefore, such special circumstances require further discussion with the government.
III. Conclusions and Follow-Up Updates
Based on the discussion, smelters currently under construction are likely to receive special consideration, as their construction began before the issuance of PP 28/2025. To further clarify related matters, FINI has been invited to a potential coordination meeting with the Indonesian Coordinating Ministry for Economic Affairs next week. SMM will continue to monitor developments regarding this regulation and provide relevant interpretations and updates.
