Indonesia Updates Nickel and Bauxite Price Benchmark Formula Effective April 2026
The Indonesian government has officially announced a revision to the formula used to determine the Mineral Price Benchmark (Harga Patokan Mineral or HPM) for nickel and bauxite ores. The updated pricing regulations are set to take effect on April 15, 2026.
Minister Bahlil has overseen the revision of the HPM formula for nickel and bauxite, a move designed to refine the valuation of these critical minerals. The policy change is codified under the newly issued rules for mineral price benchmarks.
The Indonesian Nickel Mining Association (APNI) has responded positively to the update. According to the association, Kepmen ESDM 144/2026 strengthens price transparency, which is particularly vital as the global nickel market continues to experience a rally. This regulatory shift ensures that pricing remains clear and consistent for stakeholders during periods of market volatility.
The government’s decision to modify the HPM formula underscores a strategic effort to modernize the administration of Indonesia’s mineral resources. By updating these benchmarks, the state aims to align domestic pricing more closely with global dynamics while maintaining oversight of its key exports.
Market participants are now preparing for the revised formula for nickel ore, which will govern transactions starting in mid-April 2026.
