Nickel Export Levy Incoming: Indonesia Targets Two-Week Deadline for New Mining Tax

JAKARTA, Investortrust.id — Indonesia is moving at breakneck speed to slap a new export levy on nickel, with Finance Minister Purbaya Yudhi Sadewa targeting a completion date for the regulation in as little as seven days.

Emerging from a high-level government meeting at the Presidential Palace on Wednesday, April 8, 2026, Purbaya confirmed that while the exact tariff levels are still being crunched by technical teams, the decision to tax nickel exports is now "certain." The move marks Jakarta’s latest effort to extract more value from its status as the world’s top nickel producer.

For global commodity markets and EV battery manufacturers, this levy adds a fresh layer of cost to the nickel supply chain. Indonesia has used export bans in the past to force "downstreaming"—compelling miners to build local smelters—but this new levy signals a shift toward fiscal optimization. By tying the tax to Reference Mineral Prices (HMA), the government is positioning itself to capture a larger slice of industry windfalls as global demand for battery-grade nickel remains volatile.

The Two-Week Countdown

The Ministry of Finance is coordinating across several agencies this week to hammer out the final details. Purbaya noted that the discussions have entered the finalization stage, focusing on the specific price thresholds that will trigger the levy.

"It should be finished in a week or two," Purbaya told reporters on Wednesday. "We have been discussing this since yesterday and throughout this entire week, but there are still details that need to be finalized."

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The Retroactive Risk

One of the most contentious points currently under review is whether the government will apply the levy retroactively. Such a move would allow Jakarta to collect taxes on exports made since the beginning of the current month, a strategy previously considered for the coal sector.

Purbaya admitted that while he wants to maximize state coffers, he is wary of crushing the very industry that supports Indonesia’s industrial ambitions. "It depends on the technical team's discussion. I hope it can [be retroactive]. I want as much money as possible, but the industry must also be considered," the Finance Minister added.

Fiscal Pressure and Mining Loopholes

The push for a nickel levy is partly driven by the government's frustration with massive tax "leakages" in other mining segments. Purbaya specifically highlighted the coal sector, where the state is currently grappling with a Rp 25 trillion ($1.57 billion) burden in tax restitutions—effectively resulting in the state subsidizing wealthy mining operations.

By implementing a price-indexed levy on nickel, the Ministry of Finance hopes to create a more balanced fiscal environment where the state's take is protected regardless of accounting maneuvers by private firms.

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