INTIEAIndonesia · Metal domestic price regulationPolicyIn force

Metal domestic price regulation

Since 2015, monthly domestic benchmarks for the price of several metals in Indonesia through Minister of Energy and Mineral Resources (MEMR) Regulation concerning the Procedure for Determining the Benchmark Price for the Sale of Minerals and Coal. The regulation provides the…

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Country / jurisdiction: Indonesia · Year: 2015 · Status: In force · Level: National · Type: Voluntary

Since 2015, monthly domestic benchmarks for the price of several metals in Indonesia through Minister of Energy and Mineral Resources (MEMR) Regulation concerning the Procedure for Determining the Benchmark Price for the Sale of Minerals and Coal. The regulation provides the formula for determining the benchmark price of metallic minerals, including nickel, cobalt, lead, zinc, bauxite, iron, silver, gold, tin, copper, manganese and chromium.

Key points in the regulation:

Benchmark Prices: The Director General sets monthly benchmark prices for metal minerals based on formulas referenced in various appendices.

Sales Procedures: Holders of production operation mining business licenses (IUP Operasi Produksi) and special mining business licenses (IUPK Operasi Produksi) must follow the established benchmark prices when selling metal minerals.

Reporting Requirements: License holders must report monthly sales details to the Minister through the Director General or governor within five calendar days after the end of each month.

Adjustment Costs: The benchmark prices may include adjustment costs for transportation, surveying, transshipment, processing, refining, and insurance, which are further regulated by the Director General.

MEMR Regulation 7/2017 lays the groundwork by establishing the procedures for determining benchmark prices for metallic minerals and coal. This regulation ensures that sales are conducted based on market mechanisms or international prices.

GR 96/2021 builds upon this framework by mandating that mining license holders adhere to the price guidelines set by MEMR. It covers various aspects of mining operations, including licensing, production, sales, and environmental management and emphasises the prioritisation of domestic interests.

MEMR Decree 72/2025 further implements the provisions of GR 96/2021 by providing detailed guidelines for the determination of benchmark prices, ensuring that sales are conducted at fair and regulated prices. It establishes specific formulas for calculating these prices and outlines the administrative procedures and sanctions for non-compliance.

In 2020, MEMR issued additional regulations on nickel in Ministerial Regulation 11/2020 . The rule aims to balance profits for smelters and ensure nickel mining activities remain profitable by setting the benchmark price below international prices. Updated monthly, the benchmark price is set as a floor price, with transactions allowed up to 3% below this price to account for impurities. The formula for the benchmark will be reviewed every six months.

MEMR Regulation No. 25/2018 complements Indonesia’s metal pricing policies by establishing the Domestic Market Obligation (DMO) framework.

Official source: https://jdih.esdm.go.id/storage/document/PerDirJen%20Minerba%20630.K%2032%20DJB%202015.pdf

Source

https://www.iea.org/policies/20265

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