Nickel Industry Supports Crackdown on Under-Invoicing, Seeks Clarity on Export Rules via PT DSI

Nickel industry stakeholders have raised concerns over the government’s plan to regulate exports of strategic natural resources through state-owned export entity PT Danantara Sumberdaya Indonesia (DSI). The initial phase of the policy will target coal, palm oil, and ferro alloy exports, but stakeholders are seeking detailed clarification on which ferro alloy products fall under the new export governance scheme.

FINI Chairman Arif Perdana Kusumah stated the industry is awaiting official government clarification on the definition of ferro alloy as a strategic natural resource. He explained that Indonesia’s primary nickel products (NPI) typically contain 10-12% nickel, differing technically and in international trade practice from FeNi or HS 7202 ferro alloy (usually over 15% nickel). Thus, FINI argues NPI should be classified under HS 7201 with separate policy treatment. ‘Clarity on classification is vital to avoid customs uncertainty, ensure smooth exports, and maintain national processing competitiveness,’ Arif said.

While supporting government efforts to curb under-invoicing, transfer pricing, and boost state revenue and foreign exchange oversight, FINI urged the new scheme to be partnership-based and not disrupt existing efficient direct export models. The industry also raised four critical points: first, Indonesian nickel industry growth relies on long-term investments with competitive and flexible direct global sales; new rules must not interfere with existing contracts or squeeze producer margins. Third, global nickel markets are highly dynamic, making pricing mechanisms, transaction speed, and logistics flexibility key to international competitiveness. Fourth, FINI called for pricing mechanisms, spread structures, and trade governance to be transparent, accountable, and involve industry stakeholders. ‘Investor confidence stems from consistent policy. Any trade structure changes must assess their long-term impact on investment climate, especially in nickel processing, a pillar of national energy transition,’ Arif stressed.