Government Reopens Export Tap for Nickel and Other Minerals

The government has confirmed that exports of mineral commodities such as nickel and tin derivatives can resume this week. The decision was taken while the government finalises revisions to regulations on the governance of minerals containing rare earth elements (LTJ). Chief of the Presidential Staff Office (KSP) Dudung Abdurachman stated that exports had been able to proceed again since the end of last week following coordination with relevant agencies. “Starting from yesterday, if I’m not mistaken, it has been possible. In parallel, the ministerial regulation is being revised,” Dudung said during a press conference at the Presidential Staff Office in Jakarta on Monday (3/8/2026). Dudung explained that there had previously been doubts from the Directorate General of Customs and Excise at the Ministry of Finance and the Attorney General’s Office regarding the implementation of export rules for minerals containing LTJ. However, the government decided to reopen exports to avoid disrupting the national economy. “After we communicated, because if this export is not carried out, hundreds of ships will be delayed, which will also impact economic stability,” he said. Dudung stressed that the export ban remains in place for pure rare earth elements. Meanwhile, mineral commodities containing LTJ as trace elements can be exported according to the provisions currently being discussed by the government. “If it is pure rare earth metals, it is not allowed. However, for derivatives, the content that exists in nickel or tin, for example, which is 0.0 something percent, that is currently being discussed by the Coordinating Ministry for Economic Affairs,” he said. Previously, mining industry players had urged the government to immediately reopen exports of mineral products held up due to LTJ content inspections. The lack of regulatory certainty regarding LTJ as associated minerals had hampered exports and caused significant losses for the industry. Chairman of the Indonesian Nickel Industry Forum (FINI) Arif Perdanakusumah said the LTJ issue had become a major concern for businesses because the governance rules were still unclear. “We see that this LTJ issue has been very intensively discussed by business players recently. This is part of governance, but there is still little regulation, so it is confusing,” Arif said at a CNBC Indonesia Coffee Morning event, quoted on Friday (31/7/2026). He further explained that the nickel industry is currently facing multiple pressures, ranging from the impact of Middle East geopolitics triggering spikes in energy and logistics costs, to domestic issues such as rising royalty tariffs and limited ore supply due to the RKAB, as well as the LTJ policy. “We are bleeding. From the Middle East geopolitics, we are extraordinarily impacted. The geopolitics happening there directly impacts our production costs,” he said. According to Arif, around 80% of Indonesia’s sulphur needs in 2025 came from the Middle East. When sulphur prices soared from around US$220 per ton to US$1,200 per ton, the production costs for the nickel industry rose sharply. “In 2025, we imported around 6 million tons of sulphur, and the majority is needed by the nickel industry. So besides the scarcity, the price has risen tremendously. In 2025, the sulphur price was US$220 per ton, recently it was US$1,200 per ton and it has already consumed 50%,” he said. On the other hand, the LTJ policy also disrupted export activities. Based on the latest data, around 120 ships were unable to sail because they could not leave the port.