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Kepmen ESDM No. 144.K/MB.01/MEM.B/2026, signed by Minister Bahlil Lahadalia on 10 April 2026 and effective 15 April 2026, replaces Kepmen ESDM No. 268.K/2025 as the governing instrument for Indonesia's Harga Patokan Mineral (HPM) — the binding minimum domestic transaction price for ore sales between IUP/IUPK-licensed miners and domestic downstream processors. The HPM is set monthly by the Ministry of Finance using the formula in the Kepmen; smelters that pay below HPM are in violation of the domestic-obligation (DMO) architecture under the Indonesia Mining Law (UU Minerba 3/2020).
Multi-element comprehensive pricing formula. The old HPM priced nickel ore solely on nickel content × Correction Factor × HMA Nickel benchmark price. The new formula is:
`` HPM Bijih Nikel = [(%Ni × CF_Ni × HMA_Ni) + (%Fe × CF_Fe × HMA_Iron Ore × 100) + (%Co × CF_Co × HMA_Co) + (%Cr × CF_Cr × HMA_Chrome Ore × 100)] × (1 − MC) ``
By adding by-product credits for iron (Fe), cobalt (Co), and chromium (Cr), the formula captures value previously monetised exclusively by the smelter. The structure is analogous to the "payable metals" framework used in base-metals concentrate pricing; its introduction into a laterite-ore HPM context is novel and potentially replicable across other multi-mineral ore streams (bauxite-linked aluminium, manganese).
CF reset for 1.6%-grade ore: 17% → 30%. The Correction Factor for the modal Indonesian nickel-ore grade (1.6% Ni) was raised from 17% to 30% — a ~76% increase. The CF governs the share of the HMA Nickel benchmark that flows to the upstream miner. On a ~USD 13,000/t Ni HMA, the CF reset translates to roughly USD 3,900/t Ni-content (vs. USD 2,210/t previously), with a grade-linked inverse adjustment of ±1% CF per ±0.1% Ni grade. Higher-grade ore (1.7%–2.0%) therefore carries a lower incremental CF, compressing the premium miners previously earned on premium-grade ore and incentivising volume-based throughput strategies.
Wet-metric-ton basis shift. Moving from US$/dmt to US$/wmt with explicit moisture-content deduction removes prior ambiguity that allowed smelters to negotiate favourable moisture assumptions and discount effective HPM payments in purchase contracts.
Scope: 10 minerals. Beyond nickel, the decree revises HPM formulas for bauxite, cobalt, copper, iron sand, and additional minerals listed in the Kepmen attachment. The bauxite revision is significant given Indonesia's position as the world's second-largest bauxite producer; the parallel anti-dumping dynamics (India DGTR paperboard probe targeting Indonesian exports) illustrate the cross-sector trade tensions the broader hilirisasi architecture generates.