Indonesia Hikes Copper, Gold Export Benchmarks as Global Demand Surges

JAKARTA, Investortrust.id — The Indonesian Ministry of Trade has officially raised the Export Benchmark Prices (HPE) for copper concentrate and precious metals for the second half of March 2026, signaling a bullish outlook for the nation’s extractive industries.

Under the new regulatory framework, the HPE for copper concentrate (with a grade of Cu ≥ 15%) is now set at $6,792.97 per wet metric ton (WMT). This represents a 1.63% climb from the previous period’s level of $6,684.18 per WMT.

The adjustment is more than a mere clerical update; it serves as a critical barometer for the global appetite for industrial inputs. As the world accelerates its transition toward electrification and advanced manufacturing, Indonesia—home to some of the world’s largest deposits—is leveraging its market position to capture higher rents. These benchmarks ensure that the state’s share of mineral wealth keeps pace with the volatile London Metal Exchange (LME) and London Bullion Market Association (LBMA) rates.

Tommy Andana, Director General of Foreign Trade at the Ministry of Trade, noted in a statement on Sunday that the upward trend in copper is fueled by a significant escalation in global demand.

The electrical sector, general manufacturing, and rapid technological advancements are the primary engines driving this hunger for copper. Furthermore, price increases in associated minerals—silver rose 5.76% while pure copper ticked up 0.62%—have bolstered the underlying calculation for this period’s benchmark.

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Safe Haven Gains

Industrial metals are not the only commodities enjoying a tailwind. Gold benchmarks have also recorded a sharp spike. The HPE for gold has skyrocketed to $165,118.45 per kilogram or approximately $5,135.76 per troy ounce.

This rally reflects a dual-track demand: gold remains a vital component in high-end electronics, but its primary driver currently is its role as a "safe haven" investment. Amid shifting global economic dynamics, investors are flocking to bullion to hedge against currency fluctuations and geopolitical instability.

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Regulatory Oversight

These price points are codified under Minister of Trade Decree No. 422 of 2026, which governs the Export Benchmark Prices and Reference Prices for Mining Products Subject to Export Duties. The policy remains in effect from March 15 through March 31, 2026.

The Ministry maintains that the price-setting process is conducted transparently through cross-ministerial coordination, relying on technical data from global hubs in London to ensure that Indonesian exports remain competitive yet lucrative for the national treasury.

Caption: An illustration of the anode casting process. Blister copper is heated in an anode furnace to remove further impurities and then cast into shapes called anodes. These are sent for final refining at the PT Freeport Indonesia (PTFI) smelter in the Gresik Special Economic Zone (SEZ), East Java, Monday (9/23/2024). Photo: PT Freeport Indonesia (PTFI)/Handout

What is HPE?

HPE (Harga Patokan Ekspor) translates to Export Benchmark Price. It is a monthly (or bi-monthly) price floor set by the Indonesian government for various commodities, particularly minerals and agricultural products like palm oil.

The HPE is the primary basis for calculating the export duty that mining companies must pay to the Indonesian government. By setting an HPE, the government ensures that companies pay taxes based on current global market values rather than undervalued private invoices.

It prevents "transfer pricing," where companies might try to sell minerals to their own overseas subsidiaries at an artificially low price to avoid Indonesian taxes.

The benchmark also reflects the government's official stance on commodity value, aligned with international exchanges like the LME, ensuring the state captures its fair share of the "windfall" when global prices surge.