Executive Summary

Key insights and market outlook

Indonesian nickel miners, represented by APNI and FINI, are protesting the Rp6.5 billion per hectare fine imposed by the Ministry of Energy and Mineral Resources through regulation No. 391.K/MB.01/MEM.B/2025 ¹

². The fine is the highest among mineral commodities, sparking concerns about its impact on the industry. The associations are seeking clarification on the fine's formulation from President Prabowo Subianto and relevant ministers ¹.

Full Analysis

02

Deep Dive Analysis

Indonesian Nickel Industry Challenges Record Fines

Regulatory Background

The Ministry of Energy and Mineral Resources (ESDM) issued regulation No. 391.K/MB.01/MEM.B/2025 on December 1, 2025, establishing administrative fines for mining activities in forest areas ¹

². The regulation sets different fine rates for various mineral commodities: Rp6.502 billion per hectare for nickel, Rp1.761 billion for bauxite, Rp1.251 billion for tin, and Rp354 million for coal.

Industry Response

Nickel mining companies, represented by the Indonesian Nickel Miners Association (APNI) and the Indonesian Nickel Industry Forum (FINI), have expressed strong objections to the new fine structure ¹

. APNI Chairman Nanan Soekarna stated that the association is unaware of the detailed formulation behind the fine calculation and has requested clarification from President Prabowo Subianto and relevant ministers. The industry is particularly concerned about the nickel fine being nearly four times higher than the next closest commodity (bauxite).

Key Concerns and Potential Impacts

Highest fine among mineral commodities: Nickel faces the highest penalty at Rp6.5 billion per hectare
Lack of transparency: Industry associations claim they are unaware of the fine's calculation methodology
Potential industry impact: Such high fines could significantly affect operational costs and investment in the nickel sector
Regulatory clarity: The industry is seeking official explanation from the government