Mining association questions scope of Danantara nickel export policy

The Indonesian Mining Experts Association (Perhapi) has urged the government to clarify which nickel derivative products will be required to be exported through state-owned trading firm PT Danantara Sumberdaya Indonesia (DSI), as uncertainty over the scope of the government’s planned single-gate export policy weighs on the sector.

Muhammad Toha, an official at Perhapi, said industry players remained in a “wait-and-see” position because the government had yet to clearly define which ferro-alloy products would be covered by the new rules.

“If what is meant is ferro alloy products, then which types are included? That is still unclear,” Toha told Bloomberg Technoz on Tuesday.

The Trade Ministry is drafting a regulation that would require exports of certain ferro-alloy products, including nickel-derived products, to be routed through PT Danantara Sumberdaya Indonesia as part of a broader state-controlled export mechanism for strategic natural resources.

Presentation materials from a government coordination meeting reviewed by local media showed ferronickel products under HS code 7202.60.00 would be among the commodities subject to the policy.

Toha said ferronickel and nickel pig iron (NPI) should technically not fall under the ferro-alloy classification under existing Trade Ministry rules.

“If the regulation only refers to ferro alloys, then ferronickel and NPI should not be included,” he said, adding the issue was still being discussed among ministries.

The association also questioned the legal basis for state intervention in exports of processed nickel products, arguing ownership of the material had effectively shifted to private companies after royalties were paid to the government.

Indonesia requires miners to pay royalties to the Energy and Mineral Resources Ministry under Government Regulation No. 19/2025 on non-tax state revenue tariffs.

“Once it is processed into NPI or ferronickel, it becomes an industrial product,” Toha said. “Its ownership status is no longer fully state-owned because the royalties have already been paid.”

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Most nickel smelters in Indonesia operate as standalone entities separate from mining companies, with ownership of nickel ore transferred during commercial transactions between miners and smelters, he added.

Under the draft regulation, a transition period would run from June 1 to Aug. 31, 2026. During that period, exports would still use surveyor reports owned by companies, but shipments would be made under PT Danantara Sumberdaya Indonesia’s name, while exporters would remain listed as owners of the goods in customs documents.

Energy Minister Bahlil Lahadalia said earlier that all mineral commodities would eventually be exported through DSI, although coal and some semi-processed iron products would be prioritised in the initial phase.

“All minerals will eventually go through Danantara,” Bahlil told reporters on May 20.

Ferronickel is produced by rotary kiln electric furnace nickel smelters using high-grade saprolite nickel ore and is mainly used as feedstock for stainless steel production.

Indonesia produced 579,430 metric tons of ferronickel last year, according to Energy Ministry data, while this year’s production target is 540,400 tons.

Editing by Reiner Simanjuntak