Minister Bahlil Explains New Mineral Benchmark Price Formula to China

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has explained the new mineral benchmark price (HPM) formula to businesspeople and the Chinese Embassy. “Some have already communicated with me, the ambassador has talked to me. I have given a good explanation,” Bahlil said in Jakarta on Wednesday. Regarding a letter from the Chinese Chamber of Commerce, Bahlil stated that he has not yet received it. The content of the letter includes concerns from Chinese business actors regarding issues such as tax and royalty increases, law enforcement, increasingly strict work visa regulations, retention of export forex earnings, and others. Chinese business actors have warned the Indonesian government that changing regulations affect investor confidence and the future investment climate. On 15 April 2026, the Ministry of ESDM will implement a new formula for determining the mineral benchmark price (HPM) to provide adaptive, fair, and transparent regulations, as stated by the Director General of Minerals and Coal at the Ministry of ESDM, Tri Winarno. These changes are contained in Ministerial Decree No. 144 of 2026 amending Ministerial Decree No. 268.K/MB.01/MEM.B/2025 on Guidelines for Determining Benchmark Prices for the Sale of Metal Mineral and Coal Commodities. The regulation covers three substantial changes, namely the adjustment of the nickel ore formula through adjustments to the Corrective Factor (CF) and the addition of associated minerals (iron, cobalt, and chromium) in the HPM calculation. Next is the adjustment of the bauxite ore formula, which involves a reduction in the reactive-silica factor (R-SiO2) in the HPM calculation. Tri explained that the current global commodity market dynamics are moving very quickly and fluctuatively. Global economic uncertainty requires us to have adaptive, fair, and transparent regulations. The government periodically evaluates the mineral benchmark price (HPM) formula. Tri urged all mining companies, especially nickel and bauxite, to immediately conduct intensive coordination with the surveyors.