Indonesia's Ministry of Mines plans to revise the nickel ore HPM formula in April to incorporate market premiums into the tax calculation system.

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The Indonesian Ministry of Energy and Mineral Resources (ESDM) is completing the review of the calculation formula for the nickel ore benchmark price (HPM) and plans to officially implement it by April 2026. The Director of the Mineral and Coal Directorate, Tri Winarno, pointed out that the current HPM no longer accurately reflects current market prices, especially failing to cover the “market premium” actually paid by smelters. The core of this revision is to incorporate these premium variables into the royalty calculation system to ensure that national revenue accurately reflects the true transaction value, thereby transforming the HPM from a simple “transaction bottom price” into a more market-representative pricing benchmark. (SMM)

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