[SMM Hot Topic on Indonesian Nickel Ore: Is the Planned Tax Rate Likely to Fall Short of Expectations?]

According to SMM, some nickel-related enterprises and civil organizations in Indonesia have expressed opposition to the government's proposal to increase the nickel ore royalty from 10% to 14%~19% as planned in the "Amended Government Regulation (PP) No. 26/2022". These entities believe that raising the nickel ore royalty to 14%~19% is "unrealistic", mainly due to the current fluctuation downward of global nickel prices and the high costs of mining and smelting projects, which have led to relatively small or even negative profit margins for some industry-related companies. If this proposal is implemented, it will weaken the competitiveness of Indonesian nickel products in the global market and force mines to accelerate the development of nickel ore to improve the grade, thereby reducing production levels and shortening mine life, ultimately affecting the government's long-term revenue. The related enterprises and civil organizations propose that the government should consider formulating a "gradual, realistic, and fair policy". According to SMM, discussions on this matter are still ongoing among various parties in Indonesia, with some local nickel mining and smelting companies and civil organizations negotiating with the government to appropriately reduce the extent of the nickel ore royalty increase. SMM will continuously track information on adjustments to PNBP policies in Indonesia and provide first-hand consultations to the market. 》View SMM Nickel Prices, Data, and Market Analysis 》Click to View SMM Nickel Industry Chain Database

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[SMM Hot Topic on Indonesian Nickel Ore: Is the Planned Tax Rate Likely to Fall Short of Expectations?]

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