[SMM Analysis] Key Highlights of Indonesia Training to Miners APNI 2024

At the Training to Miners APNI 2024 in November, the latest updates on the current approval progress of PNBP and RKAB, which are closely related to the operations and transactions of nickel miners, were presented.

Indonesia has provided a potential direction for new interpretation adjustments to the non-tax state revenue (PNBP Royalti) for laterite nickel ore. Currently, nickel miners need to declare the transaction quantity and grade for each Indonesian domestic trade laterite nickel ore transaction based on the actual FOB price, and then pay a 10% resource fee. Some mines also refer to this fee as a royalty. To support the new energy battery materials industry, a 2% royalty may be imposed on nickel ore with a grade below 1.5% in the future. This adjustment reflects the government's new policy direction aimed at promoting the development of the new energy industry.

Regarding the current progress of Indonesia's RKAB approval quotas, 396 applications have been submitted, 193 have been approved for production, 74 have been approved but have zero production, and 53 are still under evaluation. Over the next three years, the approved quota volumes are as follows: 2024 (271.887 million wmt), 2025 (246.662 million wmt), and 2026 (198.539 million wmt).