#maluku — Public Fediverse posts

Is Indonesia’s Nickel Industry Honeymoon on the Rocks?

Indonesia’s Nickel Industry is Being Squeezed from Inside and Outside. Is the Honeymoon Over? Tempo.co

By M. Faiz Zaki for Tempo.co, May 18, 2026

Indonesia’s nickel industry is under pressure. The Iran-Israel war, backed by the United States, has created a global energy crisis that has driven energy prices sharply higher and impacted industrial production in Indonesia.

Arif Perdanakusumah, chairman of the Indonesian Nickel Industry Forum (FINI), said domestic pressures are increasingly squeezing the industry. “Including regulation and business uncertainty.” He spoke with Tempo.co on May 13.

Arif noted that the nickel ore production quota in this year’s work plan and budget (RKAB) was set at 270 million tons, down from the 2025 RKAB of 379 million tons.

Despite the cut in the quota, the benchmark price for nickel (HMA) has jumped from about US$14,599 per dry metric ton (dmt) in December 2025 to roughly US$17,802 per dmt.

Even so, this year’s quota is below industry demand of 340–350 million tons, based on production capacity, installed capacity, and the production capability of nickel processing and refining projects.

The large demand is driven by several new projects, particularly high-pressure acid leaching (HPAL) projects, which require 40 to 50 million tons of ore. HPAL is a technology that produces high-quality nickel specifically for supplying the requirements of electric vehicle batteries.

Arif explained that nickel companies were also impacted by a decree issued by the energy and mineral resources minister (Kepmen ESDM No. 144.K/MB.01/MEM.B/2026) that amended an earlier regulation (No. 268.K/MB.01/MEM.B/2025) that provided for Guidelines for Setting Benchmark Prices for the Sale of Metallic Mineral Commodities and Coal. The change affects the mineral benchmark price (HPM) used for limonite ore, the feedstock for HPAL plants. “Our current calculations show that if companies operate with the existing cost structure they will eventually incur losses and bleed,” said Arif.

The decree affects the nickel limonite pricing formula: a previous benchmark near US$17 per ton moved to US$43 per ton now while the market price sits at US$28 per ton. This price spike automatically increases the production cost of one ton of nickel mixed hydroxide precipitate (MHP) by US$4,000 to $5,000, putting companies at risk of losses.

FINI has submitted an alternative pricing formula and urged the government to reconsider the limonite benchmark, arguing the current level will kill the HPAL industry.

Roy Arman Arfandy, president director of PT Trimegah Bangun Persada Tbk (also known as Harita Nickel), said a planned rise in mining royalties would sharply cut company profits. He added that at a 10 percent margin and with planned export duties, the company would be unprofitable—an outcome compounded by soaring diesel costs which have roughly doubled from about Rp15,000 per liter to about Rp30,000 per liter. “The situation is actually difficult for the nickel industry,” Roy said.

Energy and mineral resources minister Bahlil Lahadalia and finance minister Purbaya Yudhi Sadewa recently agreed to delay implementing the higher mining royalties and planned export duties which had been scheduled to take effect June 1, 2026.

Roy also said company finances are threatened by new rules on foreign-exchange repatriation from resource exports (DHE), set to take effect the same day. The industry still faces a proposed windfall tax, and a 15 percent global minimum tax, despite earlier incentives such as tax allowances and holidays granted to pioneer industries.

The industry also faces mounting financial risks as many nickel producers remain heavily reliant on bank loans and could see rising levels of bad debt, Arif Perdanakusumah said.

The sector has also been hit by a skyrocketing increase in sulfur prices — from about US$200 to US$250 per ton in 2023 to US$1,137 per ton on May 13, 2026. Sulfur is processed into sulfuric acid which is used to leach low‑grade nickel. Arif said roughly 80 percent of global sulfur supply originates in the Middle East and that sulfur now accounts for around 56 percent of HPAL project costs, up from roughly 25 percent.

Arif urged the government to develop a nickel‑industry roadmap to bolster domestic supply and provide policy stability. He said industry players were caught off guard by the sudden changes to the RKAB quota and other measures. “Policy stability is what we actually want,” he said.

He predicted that the pressure on the nickel industry this year would also ripple beyond the mining and manufacturing. He said that one of the most affected areas would be food vendors and boarding houses, typically used by industry employees, as the number of workers is expected to decrease.

The complaints expressed by business leaders in the nickel industry are similar to those voiced by Chinese companies investing in Indonesia. Through the China Chamber of Commerce in Indonesia, they have already written to Indonesia’s President Prabowo, urging improvements to the investment climate in Indonesia.

The letter was sent primarily because many Chinese companies have invested and contributed to economic growth, job creation, improved industrial performance, and the implementation of social programs in Indonesia, but are now under pressure from overly strict regulations, heavy law enforcement, and allegations of corruption and extortion from the authorities.

“These problems have severely disrupted normal business operations, directly undermined long-term investment confidence, and causing widespread concern among Chinese investment companies regarding the current business environment and their future development in Indonesia,” the statement, quoting from the letter, said.

The Chinese Chamber of Commerce also questioned the nickel ore production quota which was cut by more than 70 percent. The impact they feel is disruptive to the development of downstream industries for new and renewable energy and stainless steel.

They also complained about the mandatory foreign exchange retention (DHE) requirement, which creates high levels of uncertainty for resource exporters who are required to deposit 50 percent of their foreign exchange earnings in state-owned banks for at least one year. They see this regulation as detrimental to company liquidity and long-term operations.

Responding to the complaints of Chinese business operators, Deputy Minister of Investment and Downstreaming Todotua Pasaribu said the letter expressing concerns to the Indonesian government was reasonable, given the current situation. He also confirmed there would be a meeting with Chinese investors about this issue. “We consider this a positive step that provides input to the government,” he said.

For the Ministry of Investment and Downstreaming, Todotua said, creating a conducive investment climate is a key priority for the government. Investors directly also have to process a variety of commodities that Indonesia possesses. The benefits include greater employment and stronger economic growth.

M. Faiz Zaki has been a journalist at Tempo since 2022. He graduated from the Anthropology Program at Airlangga University, Surabaya. He usually covers legal and crime issues.

This post is based on https://www.tempo.co/ekonomi/industri-nikel-tertekan-geopolitik-kebijakan-pemerintah-2136386. Featured image credit: Workers using fire-resistant clothing remove nickel ore from a furnace during the furnace process at PT Vale Indonesia Tbk’s smelter in Sorowako, East Luwu, South Sulawesi, October 21, 2025. ANTARA/Nova Wahyudi

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Is Indonesia’s Nickel Industry Honeymoon on the Rocks?

Indonesia’s Nickel Industry is Being Squeezed from Inside and Outside. Is the Honeymoon Over? Tempo.co

By M. Faiz Zaki for Tempo.co, May 18, 2026

Indonesia’s nickel industry is under pressure. The Iran-Israel war, backed by the United States, has created a global energy crisis that has driven energy prices sharply higher and impacted industrial production in Indonesia.

Arif Perdanakusumah, chairman of the Indonesian Nickel Industry Forum (FINI), said domestic pressures are increasingly squeezing the industry. “Including regulation and business uncertainty.” He spoke with Tempo.co on May 13.

Arif noted that the nickel ore production quota in this year’s work plan and budget (RKAB) was set at 270 million tons, down from the 2025 RKAB of 379 million tons.

Despite the cut in the quota, the benchmark price for nickel (HMA) has jumped from about US$14,599 per dry metric ton (dmt) in December 2025 to roughly US$17,802 per dmt.

Even so, this year’s quota is below industry demand of 340–350 million tons, based on production capacity, installed capacity, and the production capability of nickel processing and refining projects.

The large demand is driven by several new projects, particularly high-pressure acid leaching (HPAL) projects, which require 40 to 50 million tons of ore. HPAL is a technology that produces high-quality nickel specifically for supplying the requirements of electric vehicle batteries.

Arif explained that nickel companies were also impacted by a decree issued by the energy and mineral resources minister (Kepmen ESDM No. 144.K/MB.01/MEM.B/2026) that amended an earlier regulation (No. 268.K/MB.01/MEM.B/2025) that provided for Guidelines for Setting Benchmark Prices for the Sale of Metallic Mineral Commodities and Coal. The change affects the mineral benchmark price (HPM) used for limonite ore, the feedstock for HPAL plants. “Our current calculations show that if companies operate with the existing cost structure they will eventually incur losses and bleed,” said Arif.

The decree affects the nickel limonite pricing formula: a previous benchmark near US$17 per ton moved to US$43 per ton now while the market price sits at US$28 per ton. This price spike automatically increases the production cost of one ton of nickel mixed hydroxide precipitate (MHP) by US$4,000 to $5,000, putting companies at risk of losses.

FINI has submitted an alternative pricing formula and urged the government to reconsider the limonite benchmark, arguing the current level will kill the HPAL industry.

Roy Arman Arfandy, president director of PT Trimegah Bangun Persada Tbk (also known as Harita Nickel), said a planned rise in mining royalties would sharply cut company profits. He added that at a 10 percent margin and with planned export duties, the company would be unprofitable—an outcome compounded by soaring diesel costs which have roughly doubled from about Rp15,000 per liter to about Rp30,000 per liter. “The situation is actually difficult for the nickel industry,” Roy said.

Energy and mineral resources minister Bahlil Lahadalia and finance minister Purbaya Yudhi Sadewa recently agreed to delay implementing the higher mining royalties and planned export duties which had been scheduled to take effect June 1, 2026.

Roy also said company finances are threatened by new rules on foreign-exchange repatriation from resource exports (DHE), set to take effect the same day. The industry still faces a proposed windfall tax, and a 15 percent global minimum tax, despite earlier incentives such as tax allowances and holidays granted to pioneer industries.

The industry also faces mounting financial risks as many nickel producers remain heavily reliant on bank loans and could see rising levels of bad debt, Arif Perdanakusumah said.

The sector has also been hit by a skyrocketing increase in sulfur prices — from about US$200 to US$250 per ton in 2023 to US$1,137 per ton on May 13, 2026. Sulfur is processed into sulfuric acid which is used to leach low‑grade nickel. Arif said roughly 80 percent of global sulfur supply originates in the Middle East and that sulfur now accounts for around 56 percent of HPAL project costs, up from roughly 25 percent.

Arif urged the government to develop a nickel‑industry roadmap to bolster domestic supply and provide policy stability. He said industry players were caught off guard by the sudden changes to the RKAB quota and other measures. “Policy stability is what we actually want,” he said.

He predicted that the pressure on the nickel industry this year would also ripple beyond the mining and manufacturing. He said that one of the most affected areas would be food vendors and boarding houses, typically used by industry employees, as the number of workers is expected to decrease.

The complaints expressed by business leaders in the nickel industry are similar to those voiced by Chinese companies investing in Indonesia. Through the China Chamber of Commerce in Indonesia, they have already written to Indonesia’s President Prabowo, urging improvements to the investment climate in Indonesia.

The letter was sent primarily because many Chinese companies have invested and contributed to economic growth, job creation, improved industrial performance, and the implementation of social programs in Indonesia, but are now under pressure from overly strict regulations, heavy law enforcement, and allegations of corruption and extortion from the authorities.

“These problems have severely disrupted normal business operations, directly undermined long-term investment confidence, and causing widespread concern among Chinese investment companies regarding the current business environment and their future development in Indonesia,” the statement, quoting from the letter, said.

The Chinese Chamber of Commerce also questioned the nickel ore production quota which was cut by more than 70 percent. The impact they feel is disruptive to the development of downstream industries for new and renewable energy and stainless steel.

They also complained about the mandatory foreign exchange retention (DHE) requirement, which creates high levels of uncertainty for resource exporters who are required to deposit 50 percent of their foreign exchange earnings in state-owned banks for at least one year. They see this regulation as detrimental to company liquidity and long-term operations.

Responding to the complaints of Chinese business operators, Deputy Minister of Investment and Downstreaming Todotua Pasaribu said the letter expressing concerns to the Indonesian government was reasonable, given the current situation. He also confirmed there would be a meeting with Chinese investors about this issue. “We consider this a positive step that provides input to the government,” he said.

For the Ministry of Investment and Downstreaming, Todotua said, creating a conducive investment climate is a key priority for the government. Investors directly also have to process a variety of commodities that Indonesia possesses. The benefits include greater employment and stronger economic growth.

M. Faiz Zaki has been a journalist at Tempo since 2022. He graduated from the Anthropology Program at Airlangga University, Surabaya. He usually covers legal and crime issues.

This post is based on https://www.tempo.co/ekonomi/industri-nikel-tertekan-geopolitik-kebijakan-pemerintah-2136386. Featured image credit: Workers using fire-resistant clothing remove nickel ore from a furnace during the furnace process at PT Vale Indonesia Tbk’s smelter in Sorowako, East Luwu, South Sulawesi, October 21, 2025. ANTARA/Nova Wahyudi

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Is Indonesia’s Nickel Industry Honeymoon on the Rocks?

Indonesia’s Nickel Industry is Being Squeezed from Inside and Outside. Is the Honeymoon Over? Tempo.co

By M. Faiz Zaki for Tempo.co, May 18, 2026

Indonesia’s nickel industry is under pressure. The Iran-Israel war, backed by the United States, has created a global energy crisis that has driven energy prices sharply higher and impacted industrial production in Indonesia.

Arif Perdanakusumah, chairman of the Indonesian Nickel Industry Forum (FINI), said domestic pressures are increasingly squeezing the industry. “Including regulation and business uncertainty.” He spoke with Tempo.co on May 13.

Arif noted that the nickel ore production quota in this year’s work plan and budget (RKAB) was set at 270 million tons, down from the 2025 RKAB of 379 million tons.

Despite the cut in the quota, the benchmark price for nickel (HMA) has jumped from about US$14,599 per dry metric ton (dmt) in December 2025 to roughly US$17,802 per dmt.

Even so, this year’s quota is below industry demand of 340–350 million tons, based on production capacity, installed capacity, and the production capability of nickel processing and refining projects.

The large demand is driven by several new projects, particularly high-pressure acid leaching (HPAL) projects, which require 40 to 50 million tons of ore. HPAL is a technology that produces high-quality nickel specifically for supplying the requirements of electric vehicle batteries.

Arif explained that nickel companies were also impacted by a decree issued by the energy and mineral resources minister (Kepmen ESDM No. 144.K/MB.01/MEM.B/2026) that amended an earlier regulation (No. 268.K/MB.01/MEM.B/2025) that provided for Guidelines for Setting Benchmark Prices for the Sale of Metallic Mineral Commodities and Coal. The change affects the mineral benchmark price (HPM) used for limonite ore, the feedstock for HPAL plants. “Our current calculations show that if companies operate with the existing cost structure they will eventually incur losses and bleed,” said Arif.

The decree affects the nickel limonite pricing formula: a previous benchmark near US$17 per ton moved to US$43 per ton now while the market price sits at US$28 per ton. This price spike automatically increases the production cost of one ton of nickel mixed hydroxide precipitate (MHP) by US$4,000 to $5,000, putting companies at risk of losses.

FINI has submitted an alternative pricing formula and urged the government to reconsider the limonite benchmark, arguing the current level will kill the HPAL industry.

Roy Arman Arfandy, president director of PT Trimegah Bangun Persada Tbk (also known as Harita Nickel), said a planned rise in mining royalties would sharply cut company profits. He added that at a 10 percent margin and with planned export duties, the company would be unprofitable—an outcome compounded by soaring diesel costs which have roughly doubled from about Rp15,000 per liter to about Rp30,000 per liter. “The situation is actually difficult for the nickel industry,” Roy said.

Energy and mineral resources minister Bahlil Lahadalia and finance minister Purbaya Yudhi Sadewa recently agreed to delay implementing the higher mining royalties and planned export duties which had been scheduled to take effect June 1, 2026.

Roy also said company finances are threatened by new rules on foreign-exchange repatriation from resource exports (DHE), set to take effect the same day. The industry still faces a proposed windfall tax, and a 15 percent global minimum tax, despite earlier incentives such as tax allowances and holidays granted to pioneer industries.

The industry also faces mounting financial risks as many nickel producers remain heavily reliant on bank loans and could see rising levels of bad debt, Arif Perdanakusumah said.

The sector has also been hit by a skyrocketing increase in sulfur prices — from about US$200 to US$250 per ton in 2023 to US$1,137 per ton on May 13, 2026. Sulfur is processed into sulfuric acid which is used to leach low‑grade nickel. Arif said roughly 80 percent of global sulfur supply originates in the Middle East and that sulfur now accounts for around 56 percent of HPAL project costs, up from roughly 25 percent.

Arif urged the government to develop a nickel‑industry roadmap to bolster domestic supply and provide policy stability. He said industry players were caught off guard by the sudden changes to the RKAB quota and other measures. “Policy stability is what we actually want,” he said.

He predicted that the pressure on the nickel industry this year would also ripple beyond the mining and manufacturing. He said that one of the most affected areas would be food vendors and boarding houses, typically used by industry employees, as the number of workers is expected to decrease.

The complaints expressed by business leaders in the nickel industry are similar to those voiced by Chinese companies investing in Indonesia. Through the China Chamber of Commerce in Indonesia, they have already written to Indonesia’s President Prabowo, urging improvements to the investment climate in Indonesia.

The letter was sent primarily because many Chinese companies have invested and contributed to economic growth, job creation, improved industrial performance, and the implementation of social programs in Indonesia, but are now under pressure from overly strict regulations, heavy law enforcement, and allegations of corruption and extortion from the authorities.

“These problems have severely disrupted normal business operations, directly undermined long-term investment confidence, and causing widespread concern among Chinese investment companies regarding the current business environment and their future development in Indonesia,” the statement, quoting from the letter, said.

The Chinese Chamber of Commerce also questioned the nickel ore production quota which was cut by more than 70 percent. The impact they feel is disruptive to the development of downstream industries for new and renewable energy and stainless steel.

They also complained about the mandatory foreign exchange retention (DHE) requirement, which creates high levels of uncertainty for resource exporters who are required to deposit 50 percent of their foreign exchange earnings in state-owned banks for at least one year. They see this regulation as detrimental to company liquidity and long-term operations.

Responding to the complaints of Chinese business operators, Deputy Minister of Investment and Downstreaming Todotua Pasaribu said the letter expressing concerns to the Indonesian government was reasonable, given the current situation. He also confirmed there would be a meeting with Chinese investors about this issue. “We consider this a positive step that provides input to the government,” he said.

For the Ministry of Investment and Downstreaming, Todotua said, creating a conducive investment climate is a key priority for the government. Investors directly also have to process a variety of commodities that Indonesia possesses. The benefits include greater employment and stronger economic growth.

M. Faiz Zaki has been a journalist at Tempo since 2022. He graduated from the Anthropology Program at Airlangga University, Surabaya. He usually covers legal and crime issues.

This post is based on https://www.tempo.co/ekonomi/industri-nikel-tertekan-geopolitik-kebijakan-pemerintah-2136386. Featured image credit: Workers using fire-resistant clothing remove nickel ore from a furnace during the furnace process at PT Vale Indonesia Tbk’s smelter in Sorowako, East Luwu, South Sulawesi, October 21, 2025. ANTARA/Nova Wahyudi

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Is Indonesia’s Nickel Industry Honeymoon on the Rocks?

Indonesia’s Nickel Industry is Being Squeezed from Inside and Outside. Is the Honeymoon Over? Tempo.co

By M. Faiz Zaki for Tempo.co, May 18, 2026

Indonesia’s nickel industry is under pressure. The Iran-Israel war, backed by the United States, has created a global energy crisis that has driven energy prices sharply higher and impacted industrial production in Indonesia.

Arif Perdanakusumah, chairman of the Indonesian Nickel Industry Forum (FINI), said domestic pressures are increasingly squeezing the industry. “Including regulation and business uncertainty.” He spoke with Tempo.co on May 13.

Arif noted that the nickel ore production quota in this year’s work plan and budget (RKAB) was set at 270 million tons, down from the 2025 RKAB of 379 million tons.

Despite the cut in the quota, the benchmark price for nickel (HMA) has jumped from about US$14,599 per dry metric ton (dmt) in December 2025 to roughly US$17,802 per dmt.

Even so, this year’s quota is below industry demand of 340–350 million tons, based on production capacity, installed capacity, and the production capability of nickel processing and refining projects.

The large demand is driven by several new projects, particularly high-pressure acid leaching (HPAL) projects, which require 40 to 50 million tons of ore. HPAL is a technology that produces high-quality nickel specifically for supplying the requirements of electric vehicle batteries.

Arif explained that nickel companies were also impacted by a decree issued by the energy and mineral resources minister (Kepmen ESDM No. 144.K/MB.01/MEM.B/2026) that amended an earlier regulation (No. 268.K/MB.01/MEM.B/2025) that provided for Guidelines for Setting Benchmark Prices for the Sale of Metallic Mineral Commodities and Coal. The change affects the mineral benchmark price (HPM) used for limonite ore, the feedstock for HPAL plants. “Our current calculations show that if companies operate with the existing cost structure they will eventually incur losses and bleed,” said Arif.

The decree affects the nickel limonite pricing formula: a previous benchmark near US$17 per ton moved to US$43 per ton now while the market price sits at US$28 per ton. This price spike automatically increases the production cost of one ton of nickel mixed hydroxide precipitate (MHP) by US$4,000 to $5,000, putting companies at risk of losses.

FINI has submitted an alternative pricing formula and urged the government to reconsider the limonite benchmark, arguing the current level will kill the HPAL industry.

Roy Arman Arfandy, president director of PT Trimegah Bangun Persada Tbk (also known as Harita Nickel), said a planned rise in mining royalties would sharply cut company profits. He added that at a 10 percent margin and with planned export duties, the company would be unprofitable—an outcome compounded by soaring diesel costs which have roughly doubled from about Rp15,000 per liter to about Rp30,000 per liter. “The situation is actually difficult for the nickel industry,” Roy said.

Energy and mineral resources minister Bahlil Lahadalia and finance minister Purbaya Yudhi Sadewa recently agreed to delay implementing the higher mining royalties and planned export duties which had been scheduled to take effect June 1, 2026.

Roy also said company finances are threatened by new rules on foreign-exchange repatriation from resource exports (DHE), set to take effect the same day. The industry still faces a proposed windfall tax, and a 15 percent global minimum tax, despite earlier incentives such as tax allowances and holidays granted to pioneer industries.

The industry also faces mounting financial risks as many nickel producers remain heavily reliant on bank loans and could see rising levels of bad debt, Arif Perdanakusumah said.

The sector has also been hit by a skyrocketing increase in sulfur prices — from about US$200 to US$250 per ton in 2023 to US$1,137 per ton on May 13, 2026. Sulfur is processed into sulfuric acid which is used to leach low‑grade nickel. Arif said roughly 80 percent of global sulfur supply originates in the Middle East and that sulfur now accounts for around 56 percent of HPAL project costs, up from roughly 25 percent.

Arif urged the government to develop a nickel‑industry roadmap to bolster domestic supply and provide policy stability. He said industry players were caught off guard by the sudden changes to the RKAB quota and other measures. “Policy stability is what we actually want,” he said.

He predicted that the pressure on the nickel industry this year would also ripple beyond the mining and manufacturing. He said that one of the most affected areas would be food vendors and boarding houses, typically used by industry employees, as the number of workers is expected to decrease.

The complaints expressed by business leaders in the nickel industry are similar to those voiced by Chinese companies investing in Indonesia. Through the China Chamber of Commerce in Indonesia, they have already written to Indonesia’s President Prabowo, urging improvements to the investment climate in Indonesia.

The letter was sent primarily because many Chinese companies have invested and contributed to economic growth, job creation, improved industrial performance, and the implementation of social programs in Indonesia, but are now under pressure from overly strict regulations, heavy law enforcement, and allegations of corruption and extortion from the authorities.

“These problems have severely disrupted normal business operations, directly undermined long-term investment confidence, and causing widespread concern among Chinese investment companies regarding the current business environment and their future development in Indonesia,” the statement, quoting from the letter, said.

The Chinese Chamber of Commerce also questioned the nickel ore production quota which was cut by more than 70 percent. The impact they feel is disruptive to the development of downstream industries for new and renewable energy and stainless steel.

They also complained about the mandatory foreign exchange retention (DHE) requirement, which creates high levels of uncertainty for resource exporters who are required to deposit 50 percent of their foreign exchange earnings in state-owned banks for at least one year. They see this regulation as detrimental to company liquidity and long-term operations.

Responding to the complaints of Chinese business operators, Deputy Minister of Investment and Downstreaming Todotua Pasaribu said the letter expressing concerns to the Indonesian government was reasonable, given the current situation. He also confirmed there would be a meeting with Chinese investors about this issue. “We consider this a positive step that provides input to the government,” he said.

For the Ministry of Investment and Downstreaming, Todotua said, creating a conducive investment climate is a key priority for the government. Investors directly also have to process a variety of commodities that Indonesia possesses. The benefits include greater employment and stronger economic growth.

M. Faiz Zaki has been a journalist at Tempo since 2022. He graduated from the Anthropology Program at Airlangga University, Surabaya. He usually covers legal and crime issues.

This post is based on https://www.tempo.co/ekonomi/industri-nikel-tertekan-geopolitik-kebijakan-pemerintah-2136386. Featured image credit: Workers using fire-resistant clothing remove nickel ore from a furnace during the furnace process at PT Vale Indonesia Tbk’s smelter in Sorowako, East Luwu, South Sulawesi, October 21, 2025. ANTARA/Nova Wahyudi

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Is Indonesia’s Nickel Industry Honeymoon on the Rocks?

Indonesia’s Nickel Industry is Being Squeezed from Inside and Outside. Is the Honeymoon Over? Tempo.co

By M. Faiz Zaki for Tempo.co, May 18, 2026

Indonesia’s nickel industry is under pressure. The Iran-Israel war, backed by the United States, has created a global energy crisis that has driven energy prices sharply higher and impacted industrial production in Indonesia.

Arif Perdanakusumah, chairman of the Indonesian Nickel Industry Forum (FINI), said domestic pressures are increasingly squeezing the industry. “Including regulation and business uncertainty.” He spoke with Tempo.co on May 13.

Arif noted that the nickel ore production quota in this year’s work plan and budget (RKAB) was set at 270 million tons, down from the 2025 RKAB of 379 million tons.

Despite the cut in the quota, the benchmark price for nickel (HMA) has jumped from about US$14,599 per dry metric ton (dmt) in December 2025 to roughly US$17,802 per dmt.

Even so, this year’s quota is below industry demand of 340–350 million tons, based on production capacity, installed capacity, and the production capability of nickel processing and refining projects.

The large demand is driven by several new projects, particularly high-pressure acid leaching (HPAL) projects, which require 40 to 50 million tons of ore. HPAL is a technology that produces high-quality nickel specifically for supplying the requirements of electric vehicle batteries.

Arif explained that nickel companies were also impacted by a decree issued by the energy and mineral resources minister (Kepmen ESDM No. 144.K/MB.01/MEM.B/2026) that amended an earlier regulation (No. 268.K/MB.01/MEM.B/2025) that provided for Guidelines for Setting Benchmark Prices for the Sale of Metallic Mineral Commodities and Coal. The change affects the mineral benchmark price (HPM) used for limonite ore, the feedstock for HPAL plants. “Our current calculations show that if companies operate with the existing cost structure they will eventually incur losses and bleed,” said Arif.

The decree affects the nickel limonite pricing formula: a previous benchmark near US$17 per ton moved to US$43 per ton now while the market price sits at US$28 per ton. This price spike automatically increases the production cost of one ton of nickel mixed hydroxide precipitate (MHP) by US$4,000 to $5,000, putting companies at risk of losses.

FINI has submitted an alternative pricing formula and urged the government to reconsider the limonite benchmark, arguing the current level will kill the HPAL industry.

Roy Arman Arfandy, president director of PT Trimegah Bangun Persada Tbk (also known as Harita Nickel), said a planned rise in mining royalties would sharply cut company profits. He added that at a 10 percent margin and with planned export duties, the company would be unprofitable—an outcome compounded by soaring diesel costs which have roughly doubled from about Rp15,000 per liter to about Rp30,000 per liter. “The situation is actually difficult for the nickel industry,” Roy said.

Energy and mineral resources minister Bahlil Lahadalia and finance minister Purbaya Yudhi Sadewa recently agreed to delay implementing the higher mining royalties and planned export duties which had been scheduled to take effect June 1, 2026.

Roy also said company finances are threatened by new rules on foreign-exchange repatriation from resource exports (DHE), set to take effect the same day. The industry still faces a proposed windfall tax, and a 15 percent global minimum tax, despite earlier incentives such as tax allowances and holidays granted to pioneer industries.

The industry also faces mounting financial risks as many nickel producers remain heavily reliant on bank loans and could see rising levels of bad debt, Arif Perdanakusumah said.

The sector has also been hit by a skyrocketing increase in sulfur prices — from about US$200 to US$250 per ton in 2023 to US$1,137 per ton on May 13, 2026. Sulfur is processed into sulfuric acid which is used to leach low‑grade nickel. Arif said roughly 80 percent of global sulfur supply originates in the Middle East and that sulfur now accounts for around 56 percent of HPAL project costs, up from roughly 25 percent.

Arif urged the government to develop a nickel‑industry roadmap to bolster domestic supply and provide policy stability. He said industry players were caught off guard by the sudden changes to the RKAB quota and other measures. “Policy stability is what we actually want,” he said.

He predicted that the pressure on the nickel industry this year would also ripple beyond the mining and manufacturing. He said that one of the most affected areas would be food vendors and boarding houses, typically used by industry employees, as the number of workers is expected to decrease.

The complaints expressed by business leaders in the nickel industry are similar to those voiced by Chinese companies investing in Indonesia. Through the China Chamber of Commerce in Indonesia, they have already written to Indonesia’s President Prabowo, urging improvements to the investment climate in Indonesia.

The letter was sent primarily because many Chinese companies have invested and contributed to economic growth, job creation, improved industrial performance, and the implementation of social programs in Indonesia, but are now under pressure from overly strict regulations, heavy law enforcement, and allegations of corruption and extortion from the authorities.

“These problems have severely disrupted normal business operations, directly undermined long-term investment confidence, and causing widespread concern among Chinese investment companies regarding the current business environment and their future development in Indonesia,” the statement, quoting from the letter, said.

The Chinese Chamber of Commerce also questioned the nickel ore production quota which was cut by more than 70 percent. The impact they feel is disruptive to the development of downstream industries for new and renewable energy and stainless steel.

They also complained about the mandatory foreign exchange retention (DHE) requirement, which creates high levels of uncertainty for resource exporters who are required to deposit 50 percent of their foreign exchange earnings in state-owned banks for at least one year. They see this regulation as detrimental to company liquidity and long-term operations.

Responding to the complaints of Chinese business operators, Deputy Minister of Investment and Downstreaming Todotua Pasaribu said the letter expressing concerns to the Indonesian government was reasonable, given the current situation. He also confirmed there would be a meeting with Chinese investors about this issue. “We consider this a positive step that provides input to the government,” he said.

For the Ministry of Investment and Downstreaming, Todotua said, creating a conducive investment climate is a key priority for the government. Investors directly also have to process a variety of commodities that Indonesia possesses. The benefits include greater employment and stronger economic growth.

M. Faiz Zaki has been a journalist at Tempo since 2022. He graduated from the Anthropology Program at Airlangga University, Surabaya. He usually covers legal and crime issues.

This post is based on https://www.tempo.co/ekonomi/industri-nikel-tertekan-geopolitik-kebijakan-pemerintah-2136386. Featured image credit: Workers using fire-resistant clothing remove nickel ore from a furnace during the furnace process at PT Vale Indonesia Tbk’s smelter in Sorowako, East Luwu, South Sulawesi, October 21, 2025. ANTARA/Nova Wahyudi

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Indonesia has 10 volcanoes that'll blow your mind 🌋

Read more: https://flip.it/tCYP5x

#travel #southeastasia #asean #aseantravel #indonesia #volcano #volcanoes #java #bali #maluku #sumatra #wanderlust

Indonesia has 10 volcanoes that'll blow your mind 🌋

Read more: https://flip.it/tCYP5x

#travel #southeastasia #asean #aseantravel #indonesia #volcano #volcanoes #java #bali #maluku #sumatra #wanderlust

#GEREJA #PROTESTAN #MALUKU advanced-search.allgraph.ro/advanced-sea... github.com/globalaudien... aePiot: Bridge to Web 4.0. Construct nodes. Own SEO.

MultiSearch Tag Explorer

#ALLANG #LEIHITU #BARAT #MALUKU #TENGAH advanced-search.aepiot.ro/advanced-sea... AB #URBE #CONDITA #LIBRI semantic-search.aepiot.com/advanced-sea... www.blueskypulse.com/globalvisibi... aePiot: Realize the power of Web 4.0. Build nodes and command the SEO future.

MultiSearch Tag Explorer

#ALLANG #LEIHITU #BARAT #MALUKU #TENGAH advanced-search.aepiot.ro/advanced-sea... AB #URBE #CONDITA #LIBRI semantic-search.aepiot.com/advanced-sea... www.blueskypulse.com/globalvisibi... aePiot: Realize the power of Web 4.0. Build nodes and command the SEO future.

MultiSearch Tag Explorer

Natural paradise ideal for #pets or other #projects 🫒

5 hectare #natural plot on the #Indonesian island of #Morotai North #Moluccas, including a high-quality, self-sufficient house 🌴

The round wooden #house with a #solar system, its own well and many fruit #trees

A #paradise for #nature and #bird lovers: #hornbills, #parrots and other #tropical bird species. 🦜

Rooms: 3
Living space: 123m²
Plot: 50.000m²
#Maluku Utara #Indonesia 🇮🇩

https://www.bluehomes.com/PRI0034/en/5-hectares-of-natural-paradise-on-Morotai-North-Moluccas/expose.html

#woodhouse #tourist #realestate

Natural paradise ideal for #pets or other #projects 🫒

5 hectare #natural plot on the #Indonesian island of #Morotai North #Moluccas, including a high-quality, self-sufficient house 🌴

The round wooden #house with a #solar system, its own well and many fruit #trees

A #paradise for #nature and #bird lovers: #hornbills, #parrots and other #tropical bird species. 🦜

Rooms: 3
Living space: 123m²
Plot: 50.000m²
#Maluku Utara #Indonesia 🇮🇩

https://www.bluehomes.com/PRI0034/en/5-hectares-of-natural-paradise-on-Morotai-North-Moluccas/expose.html

#woodhouse #tourist #realestate

Endonezya’da 6,1 büyüklüğünde bir deprem daha: Endonezya bir kez daha sallandı. Endonezya Meteoroloji, İklim ve Jeofizik Ajansı, Maluku eyaleti açıklarında 163 kilometre derinlikte 6.1 büyüklüğünde deprem meydana geldiğini bildirdi.

Depremin ardından tsunami uyarısı yapılmazken, can ve mal kaybı olup olmadığı henüz bilinmiyor. Endonezya’da dün, Cava Adası’nın Doğu Cava kesiminde yer alan Kalianget… https://www.eshahaber.com.tr/haber/endonezya-da-6-1-buyuklugunde-bir-deprem-daha-260922.html?utm_source=dlvr.it&utm_medium=mastodon EshaHaber.com.tr #deprem #Endonezya #tsunami #maluku #CavaAdası

Endonezya'da 6.7 büyüklüğünde deprem: ABD Jeolojik Araştırma Merkezi (USGS), merkez üssü Maluku'nun Tual kentinin yaklaşık 180 kilometre güneybatısında olan depremin, yaklaşık 65,7 kilometre derinlikte kaydedildiğini bildirdi. Depremde, can veya mal kaybı bildirilmedi.

Kaynak: DHA

#ESHAHABER.COM.TR

#haber #gündem #sondakika #news #press #worldnews https://www.eshahaber.com.tr/haber/endonezya-da-6.7-buyuklugunde-deprem-241489.html?utm_source=dlvr.it&utm_medium=mastodon EshaHaber.com.tr #deprem #Endonezya #Maluku #sondakika #gündem

Climate change takes spice from Ternate clove farms – Environment https://www.byteseu.com/974227/ #ClimateChange #clove #Colonialism #environment #Indonesia #Maluku #spice #ternate

Preserving #Rutong's #sago forest for food security

February 15, 2025

"Food security

"The potential of Rutong's sago forest is continuing to be developed to maintain food security and thereby, anticipate any food supply crisis.

"'The existence of the Rutong sago forest is an opportunity to revive local food,' the acting mayor of Ambon, Dominggus N. Kaya, said.

"The food security program here is an effort to revive local foods, considering that Ambon City is highly dependent on outside food supplies.

"#Sago has been a staple food for the #Maluku people since ancient times. They process sago into various foods, such as #papeda, #SaguLempeng, #SaguGula (a mixture of sago, brown sugar, and coconut), #KaruKaru (a fried mixture of sago starch and raw coconut), or #uha (a grilled mixture of raw sago and coconut wrapped in sago leaves).

"It is also used to make more contemporary foods such as #brownies and #burgers.

"The #SagoForest is vital for maintaining food security because many areas of #Ambon are seeing infrastructure #development. Thus, the land that can be used for agriculture is small."

Read more:
https://en.antaranews.com/news/345069/preserving-rutongs-sago-forest-for-food-security
#FoodSecurity #foodsovereignty #SolarPunkSunday #TraditionalFoods #Indonesia

Preserving #Rutong's #sago forest for food security

February 15, 2025

"Food security

"The potential of Rutong's sago forest is continuing to be developed to maintain food security and thereby, anticipate any food supply crisis.

"'The existence of the Rutong sago forest is an opportunity to revive local food,' the acting mayor of Ambon, Dominggus N. Kaya, said.

"The food security program here is an effort to revive local foods, considering that Ambon City is highly dependent on outside food supplies.

"#Sago has been a staple food for the #Maluku people since ancient times. They process sago into various foods, such as #papeda, #SaguLempeng, #SaguGula (a mixture of sago, brown sugar, and coconut), #KaruKaru (a fried mixture of sago starch and raw coconut), or #uha (a grilled mixture of raw sago and coconut wrapped in sago leaves).

"It is also used to make more contemporary foods such as #brownies and #burgers.

"The #SagoForest is vital for maintaining food security because many areas of #Ambon are seeing infrastructure #development. Thus, the land that can be used for agriculture is small."

Read more:
https://en.antaranews.com/news/345069/preserving-rutongs-sago-forest-for-food-security
#FoodSecurity #foodsovereignty #SolarPunkSunday #TraditionalFoods #Indonesia

Interview with Page Against the Machine (Indonesia) https://diyconspiracy.net/page-against-the-machine-interview/

#PATM #Indonesia #DIY #foodnotbombs #needleandbitch #anarchism #Maluku #Semarang

Interview with Page Against the Machine (Indonesia) https://diyconspiracy.net/page-against-the-machine-interview/

#PATM #Indonesia #DIY #foodnotbombs #needleandbitch #anarchism #Maluku #Semarang

https://www.hutanhujan.org/updates/12257/hari-anti-tambang-hatam-29-mei-lawan-kolonialisme-industri-ekstraktif
Cadangan besar #nikel dan #pasir di #Indonesia terletak di #Sulawesi dan #maluku #Indonesia ingin menjadi pemimpin pasar dunia di sektor baterai #mobillistrik . Pertambangan #nikel dan #pasir berdampak pada perusakan #lingkungan dan #hutanhujan yang masif dan mengancam kehidupan #masyarakat dan #indigenous people.
.#Nickel #Sand #IKN #emobility

Simon

#oilpastel #art #ajax #maluku #art #mastoart #artonmastodon

PT PLN Komit Hadirkan Listrik untuk Masyarakat Wilayah 3T di Seluruh Indonesia https://fajarntt.com/2023/08/20/pt-pln-komit-hadirkan-listrik-untuk-masyarakat-wilayah-3t-di-seluruh-indonesia/

#fajarntt #pln #plnpeduli #maluku #indonesia

'Batu Angos' Beach, one of the beaches on the island of Ternate in North #Maluku. This #blue #beach is filled with basalt rocks derived from lava that spewed out during the eruption of Mount Gamalama.

#wideangle #nikon #indonesia

'Batu Angos' Beach, one of the beaches on the island of Ternate in North #Maluku. This #blue #beach is filled with basalt rocks derived from lava that spewed out during the eruption of Mount Gamalama.

#wideangle #nikon #indonesia

Once I'm on duty on the island of #Ternate, North #Maluku. I got a surprise when I visited #Sulamadaha beach. Beautiful coral reefs, with Hiri island in the #background....what a heavenly beach! 😍

Once I'm on duty on the island of #Ternate, North #Maluku. I got a surprise when I visited #Sulamadaha beach. Beautiful coral reefs, with Hiri island in the #background....what a heavenly beach! 😍

Once I'm on duty on the island of #Ternate, North #Maluku. I got a surprise when I visited #Sulamadaha beach. Beautiful coral reefs, with Hiri island in the #background....what a heavenly beach! 😍

Once I'm on duty on the island of #Ternate, North #Maluku. I got a surprise when I visited #Sulamadaha beach. Beautiful coral reefs, with Hiri island in the #background....what a heavenly beach! 😍

Once I'm on duty on the island of #Ternate, North #Maluku. I got a surprise when I visited #Sulamadaha beach. Beautiful coral reefs, with Hiri island in the #background....what a heavenly beach! 😍

Magnitude Mw~7 #earthquake north of #Halmahera (#Maluku island, Indonesia) in a complex tectonic setting where several micro-plates interact. Quite large discrepancy btw depth estimates (16-46km), complicated source time function. Mechanism is mainly strike-slip.

Source of maps and MT solutions:
https://emsc-csem.org/Earthquake/earthquake.php?id=1211853#
and
http://geoscope.ipgp.fr/index.php/fr/catalogue/description-d-un-seisme?seis=us7000j553

Magnitude Mw~7 #earthquake north of #Halmahera (#Maluku island, Indonesia) in a complex tectonic setting where several micro-plates interact. Quite large discrepancy btw depth estimates (16-46km), complicated source time function. Mechanism is mainly strike-slip.

Source of maps and MT solutions:
https://emsc-csem.org/Earthquake/earthquake.php?id=1211853#
and
http://geoscope.ipgp.fr/index.php/fr/catalogue/description-d-un-seisme?seis=us7000j553

Just heard that there has been a 7.7 magnitude #earthquake in #Tanimbar. Checking the news to see if I can find out any more. It's literally decades since I was in Tanimbar, but I still have some old friends and connections there. So I'm hoping everyone is okay.

#maluku #indonesia

Kelsey Ables & Winda Charmila: Slice of paradise: #Auction of 100 Indonesian islands delayed after criticism.

"Sustainable tourism is a discourse. We just talk about it, but we don’t implement it. There is no evidence of sustainable tourism in Indonesia." — Muhammad Yusuf Sangadji, executive director of Jala Ina, an activist group in the #Maluku Islands

https://www.washingtonpost.com/world/2022/12/11/indonesia-widi-islands-sothebys-auction/ #indonesia #ecotourism #tourism

Cinema: Salawaku Trailer, Melbourne International Film Festival

https://youtu.be/U7WjnOIzx7U

The remote wilderness of Indonesia’s Maluku Islands provides a magnificent backdrop for this gentle journey of youthful discovery.

In a secluded village in Indonesia’s beautiful Maluku Islands, ten-year-old Salawaku’s older sister has gone. Salawaku takes it upon himself to find her and sets off on a grand journey into the wild heart of his country. Joined in his travels by the son of the village chief and a tourist from Jakarta carrying her own heavy burden, Salawaku will learn to see his sister in a new light after discovering that the world of adults is more complicated than it seems.

From rising star of Indonesian cinema Pritagita Arianegara comes Salawaku, an eye-opening and heart-stirring road movie set in a stretch of the world where roads barely exist. Nominated for eight awards at the Indonesian Film Festival, including Best Film and Best Director, it is a film of surprises and wonder, where difficult secrets and glorious landscapes combine into a tender and morally complex whole.

Classroom Discussion Points

Double standards for men and women in different cultures, attitudes towards sex and family, how romance is depicted in cinema, the divide between the country lifestyle and the city lifestyle, knowing how to behave ethically.

MIFF recommends this film as suitable for ages 10+
Very mild themes about unwanted pregnancy and abortion, all of which is mostly indirectly implied through dialogue, and none on which is shown. Some very mild impact scenes depicting characters being pushed around and slapped. One scene where adult characters get drunk.

Source: Melbourne International Film Festival

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Film: Salawaku at the Melbourne International Film Festival

https://youtu.be/U7WjnOIzx7U

From the website of the Melbourne International Film Festival:

“The remote wilderness of Indonesia’s Maluku Islands provides a magnificent backdrop for this gentle journey of youthful discovery.

“In a secluded village in Indonesia’s beautiful Maluku Islands, ten-year-old Salawaku’s older sister has gone. Salawaku takes it upon himself to find her and sets off on a grand journey into the wild heart of his country. Joined in his travels by the son of the village chief and a tourist from Jakarta carrying her own heavy burden, Salawaku will learn to see his sister in a new light after discovering that the world of adults is more complicated than it seems.

“From rising star of Indonesian cinema Pritagita Arianegara comes Salawaku, an eye-opening and heart-stirring road movie set in a stretch of the world where roads barely exist. Nominated for eight awards at the Indonesian Film Festival, including Best Film and Best Director, it is a film of surprises and wonder, where difficult secrets and glorious landscapes combine into a tender and morally complex whole.

“CLASSROOM DISCUSSION POINTS
Double standards for men and women in different cultures, attitudes towards sex and family, how romance is depicted in cinema, the divide between the country lifestyle and the city lifestyle, knowing how to behave ethically.

“MIFF recommends this film as suitable for ages 10+
Very mild themes about unwanted pregnancy and abortion, all of which is mostly indirectly implied through dialogue, and none on which is shown. Some very mild impact scenes depicting characters being pushed around and slapped. One scene where adult characters get drunk.”

Source: Melbourne International Film Festival

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