Indonesia's nickel industry policy adjusted, smelters will no longer receive preferential treatment

The government is launching a review of the incentives given to companies with nickel processing and refining facilities.At a time when nickel smelters are increasing in number, the Deputy Minister of Energy and Mineral Resources said that nickel smelting companies, such as nickel pig iron and nickel iron, are no longer considered to be in the advanced industry, whereas incentives previously granted were mostly based on the advanced industry designation.The incentives currently under review relate mainly to tax exemptions or tax holidays for a certain period of time for rotary kiln electric furnace nickel smelters.

The Ministry of Investment and Downstream has selected some projects that are no longer part of Indonesia's advanced industries and has adjusted the identification of some of these industries in its implementation, and other incentives will be examined subsequently. The Ministry of Finance also has provisions for extending tax exemptions, and future business areas are still being evaluated. However, the government will continue to encourage downstream programs for all commodities in the mineral and coal industries, as they create added value for the country.