Indonesia Maritime and Investment Coordination Department confirmed that Indonesias export tariff on nickel downstream semi-finished products (NPI) will take effect this year. Imposition of NPI export tax is a directive of President Zocovy, which aims to improve the mineral sales value of downstream mineral products. NPI is a semi-finished product made of processed nickel ore, which is usually used as raw material for making stainless steel.

"It should have been completed this year, and we are still discussing it with relevant ministries and agencies," Tubagus Nugraha, Assistant Deputy Mining Officer of the Maritime Coordination Department, said during a recent meeting at Grand Kemang Hotel in Jakarta. In addition to processing nickel ore into semi-finished products, the government is also preparing to process nickel ore into one of the raw materials for electric vehicle batteries.

According to Tubagus, NPI products can be processed into high nickel matte called Nickel Matte, with a nickel content of 78%. This value is higher than that of ferronickel with only 25% - 45% nickel content. "From high nickel matte, it can be converted into nickel sulfate, cobalt sulfate, precursor and battery cathode material," Tubagus said. According to a report by the Central Bureau of Statistics (BPS), Indonesias nickel exports grew rapidly in the first half of this year.

Previously, by the first half of 2021, the national nickel export volume was only 44100 tons, with an export volume of 436.8 million dollars. In the first half of 2022, the export volume soared to 2977600 tons, reaching 2.45 billion US dollars. On an annual basis, Indonesias nickel export volume in the first half of 2022 will increase by about 574% year on year, and the export volume will increase by 462% year on year.

However, BPS did not specify what type of refined nickel was exported during this period. The Indonesian government has banned the export of unprocessed nickel ores since early January 2020. The policy of prohibiting the export of original nickel ores was later sued by the European Union against the World Trade Organization (WTO). At present, the investigation process is still continuing.

According to the official WTO document, "according to the timetable adopted so far and in consultation with relevant parties, the investigation team is expected to issue the final report to all parties in the last quarter of 2022." As previously reported, Zuokowei said that it is possible to levy a tax on nickel exports, because it can increase income and promote higher value local manufacturing.

Through this tax, Jokowi also hopes to create more employment opportunities for Indonesian people. "This is also the reason why we want to implement the policy of banning bauxite, copper, tin, crude palm oil, etc. But we have not closed, we are open," the media quoted Zokovi as saying,. The President did not specify when or how much nickel export tax would be levied, but a senior government official said in early August that the government planned to introduce a nickel export tax policy in the third quarter of this year.