Total Change! Here's the Latest Calculation for the Nickel Mineral Reference Price
Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has officially released changes to the regulations regarding the Reference Price of Minerals (HPM) for nickel, bauxite, iron, gold and silver metals, tin, copper, manganese, and even titanium.
These regulations are contained in Ministerial Decree of ESDM Number 144.K/MB.01/MEM.B/2026 on Amendments to Decree No. 266/2025 on Guidelines for Determining Reference Prices for the Sale of Metal Mineral and Coal Commodities.
This regulation was signed by Minister of ESDM Bahlil Lahadalia on 10 April 2026 and takes effect from 15 April 2026.
Quoting this regulatory change, there is a significant alteration in the calculation related to the pricing formula for nickel ore. In the latest regulation, the nickel ore pricing formula now includes calculations for iron, iron ore, cobalt, and even chromium ore, as follows:
Formula:
HPM Nickel Ore = [(% Ni * CF Nickel Ore * HMA Nickel) + (% Fe * CF Associated Iron * HMA Iron Ore * 100) + (% Co * CF Associated Cobalt * HMA Cobalt) + (% Cr * CF Associated Chromium * HMA Chromium Ore * 100)] * (1-MC)
Explanations:
HPM Nickel Ore is the reference price for metal minerals in the form of nickel ore in US$/WMT.
% Ni is the Ni content in nickel ore.
% Fe is the Fe content in nickel ore, with the provision that associated iron minerals are calculated when Fe content ≤ 35%.
% Co is the Co content in nickel ore, with the provision that associated cobalt minerals are calculated when Co content ≥ 0.05%.
% Cr is the Cr content in nickel ore.
CF Nickel Ore is the Corrective Factor for Nickel Ore, which is a percentage value accommodating the correction value for nickel ore in the HPM Nickel Ore, with the provision: a. CF for nickel ore with 1.6% Ni = 30%. b. The CF value will increase/decrease by 1% for every increase/decrease in Ni content by 0.1%.
CF Associated Iron is the Corrective Factor for Associated Iron, which is a percentage value accommodating the correction value for associated iron minerals in the HPM Nickel Ore, set at 30%.
CF Associated Cobalt is the Corrective Factor for Associated Cobalt, which is a percentage value accommodating the correction value for associated cobalt minerals in the HPM Nickel Ore, set at 30%.
CF Associated Chromium is the Corrective Factor for Associated Chromium, which is a percentage value accommodating the correction value for associated chromium minerals in the HPM Nickel Ore, set at 10%.
HMA Nickel is the reference mineral price for nickel in the HPM Nickel Ore calculation formula.
HMA Iron Ore is the reference mineral price for iron ore in the HPM Iron Ore calculation formula.
HMA Cobalt is the reference mineral price for cobalt in the HPM Cobalt calculation formula.
HMA Chromium Ore is the reference mineral price for chromium ore in the HPM Chromium Ore calculation formula.
MC (Moisture Content) is the percentage of water content in nickel ore.
Meanwhile, quoting Decree 266/2025, the calculation only referenced the Reference Mineral Price (HMA) for nickel.
Formula:
HPM Nickel Ore = % Ni * CF * HMA Nickel
Explanations:
HPM Nickel Ore is the reference price for metal minerals in the form of Nickel Ore in US$/DMT.
% Ni is the Ni content in Nickel Ore.
CF is the Corrective Factor, which is a value (percentage) accommodating discounts or premiums for the quality of the commodity being traded, with the provision: a. CF for Nickel Ore with 1.9% Ni = 20%; and b. the CF value will increase/decrease by 1% for every increase/decrease in Ni content by 0.1%.
HMA Nickel is the reference mineral price for Nickel in the HPM calculation formula.
Not only for nickel products, there are also the latest HPM for lead, zinc, bauxite, iron, gold and silver metals, tin, copper, manganese, chromium, and titanium products. (CAN BE SEEN HERE)
As previously known, this HOM regulation change has been widely discussed some time ago. The Director General of Minerals and Coal (Dirjen Minerba) of the Ministry of ESDM, Tri Winarno, revealed that the new nickel HMA formula would take into account the value of associated minerals present in nickel ore.
According to him, these highly economically valuable associated minerals, such as cobalt and iron, have not been optimally priced until now.
“For each month, we previously based it on the LME (London Metal Exchange) with certain correction factors. For cobalt, we price it, for iron we price it, so the reference price can increase,” explained Tri some time ago.
The changes prepared by the government, said Tri, are purely on the formula or calculation method, namely on the correction factor and valuation of associated minerals. Meanwhile, the issuance and determination schedule for the reference price will continue routinely as usual without changes to the release period.
“If it’s issued every two weeks, we still issue it. It’s the formula that changes. The formulas,” he emphasised.
For information, the plan to increase the HMA formula for nickel is part of the government’s efforts to boost state revenues from the mineral sector.
This also aligns with the directive from Indonesian President Prabowo Subianto to optimise state income from natural resources, especially the mineral sector.
“It’s not a possibility, it’s already our decision. That we will raise the HMA. So the standard reference price for nickel, we will increase,” said Minister of ESDM Bahlil Lahadalia at the Coordinating Ministry for the Economy, quoted on Monday (30/3/2026).