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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

Nickel Exporters Hope Single-Door Policy Won't Harm Investment

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Indonesian nickel industry players are concerned that a new single-door export policy might deter investors from expanding projects in the country.
  • The government's policy aims to address issues like under-invoicing and transfer pricing, but businesses have five key concerns regarding its implementation.
  • Concerns include the impact on long-term contracts, potential margin erosion due to additional costs, maintaining investment attractiveness, dynamic market needs, and the pricing mechanism.

Indonesian nickel industry leaders are voicing concerns that a newly implemented single-door export policy for strategic commodities could negatively impact investor confidence and project expansion.

Arif Perdana Kusumah, Chairman of the Indonesian Nickel Industry Forum, expressed hope that the policy, channeled through PT Danantara Sumberdaya Indonesia (DSI), would not diminish the appeal of ongoing expansion projects. He stated this during a discussion in Jakarta on June 24, 2026, organized by Tempo Inti Media Impresario.

While acknowledging the government's objectives to combat under-invoicing, transfer pricing, and boost foreign exchange, nickel entrepreneurs have outlined five critical points for the government's consideration. These include ensuring the new scheme does not disrupt existing long-term contracts with buyers, preventing additional costs from eroding producer margins amid global price pressures and rising domestic costs, and maintaining the attractiveness of new investments, particularly the projected $20 billion in new nickel industry investments between 2026 and 2028.

Furthermore, the industry highlighted the dynamic nature of the nickel market, emphasizing the need for competitive pricing, swift transactions, and logistical flexibility. They also raised questions about the pricing mechanism, noting Indonesia's current reliance on the London Metal Exchange (LME) and Shanghai Metal Market (SMM) indices, and whether a new domestic mineral exchange would be established to create a unique Indonesian price index.

DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.