Bahlil Revises Mineral Benchmark Price Formula, Business Owners Issue This Warning
The government has officially implemented a new formula for the Mineral Benchmark Price (HPM) for nickel ore starting 15 April 2026. This policy is outlined in Ministerial Decree No. 144.K/MB.01/MEM.B/2026, which revises Decree No. 266 of 2025 on guidelines for determining benchmark prices for metallic minerals and coal.
Executive Director of the Indonesian Mining Association (API-IMA), Sari Esayanti, views periodic HPM adjustments as reasonable, provided they continue to reference international prices such as those on the London Metal Exchange (LME).
However, she states that such adjustments must still consider calculations capable of creating a positive investment climate to maintain economic stability.
“As the Indonesian Mining Association (API-IMA), we strongly emphasise the importance of balancing the enhancement of commodity value with the sustainability of demand,” she said to CNBC Indonesia on Thursday (16/4/2026).
Thus, the mining industry is expected not only to grow but also to make a significant contribution to national economic sustainability and growth.
“But also contribute significantly to efforts for sustainability and national economic growth,” she added.
Director General of Minerals and Coal (Dirjen Minerba) at the Ministry of Energy and Mineral Resources, Tri Winarno, explained that the price formula adjustment is intended to correct domestic nickel ore prices, which have been deemed too low compared to international market prices.
The formula change aims to increase state revenues from the royalty sector. He believes that with the new, more accurate calculation, the contribution from the nickel mining sector to state income will rise.
“Yes, there will be some additional (state revenue),” he said when met at the DPR RI Building in Jakarta, quoted on Thursday (16/4/2026).
Tri revealed the reason for correcting the price formula due to a significant price gap between domestic nickel ore production and export prices in competitor countries like the Philippines and New Caledonia. His side found that nickel prices in Indonesia have not captured the premium value that should be included in the HPM calculation.
“Indeed, the ore prices here were too low previously. You can check with the association too that there was a premium back then. Well, that premium wasn’t captured in the HPM price at that time. Then we made the correction. That’s roughly the point,” Tri explained.
The new formula adjustment includes the application of a correction factor and the valuation of other mineral contents found in nickel ore. Besides nickel, elements such as iron (ferro), cobalt, and chromium are now factored into the price formula.
“Just the correction factor and valuing ferro—ferro is iron—cobalt and chromium,” he added.
The government hopes this new regulation will be more adaptive to market dynamics. The Ministry of Energy and Mineral Resources is committed to continuously updating rules to respond to commodity price changes, ensuring benefits for both the state and industry players.
“Hopefully it’s good, something like that. I don’t have price targets or anything, but the point is we keep updating for any changes that occur and hopefully we’re adaptive to the changes,” he stressed.