Industrial Policy & Trade Monitor· 2678 actions· ✨ 92 recent

Indonesia's Ministry of Energy and Mineral Resources (MEMR) issued Ministerial Decree Kepmen ESDM No. 268.K/MB.01/MEM.B/2025 on 8 August 2025, establishing Guidelines for Determining Benchmark Prices (Harga Patokan Mineral/HPM and Harga Patokan Batubara/HPB) for the sale of metal minerals and coal. It revokes the predecessor Kepmen 72/2025 and relaxes the absolute HPM/HPB price-floor mandate—exempting pre-existing contracts at below-benchmark prices—while preserving HPM/HPB as the obligatory basis for royalty and tax calculation, closing transfer-pricing avoidance. Pricing formulas cover nickel, cobalt, copper, gold, bauxite, tin, and coal grades, directly determining royalty revenues collected under the already-filed PP 19/2025 progressive royalty framework from the world's largest nickel producer (~62% of global supply).

Indonesia's House of Representatives (DPR) passed the Fourth Amendment to Law No. 4 of 2009 on Mineral and Coal Mining on 18 February 2025, and the government enacted it as Undang-Undang Nomor 2 Tahun 2025 on 19 March 2025. The amendment statutorily entrenches the long-standing hilirisasi (downstream-utilisation priority) doctrine for IUP/IUPK holders at production stage, opens preferential mining-permit allocation pathways for SMEs, cooperatives, religious-organisation business entities, and BUMN/BUMD, and ties licence issuance to approved RKAB production quotas — operationalising the Bahlil/Prabowo supply-management strategy across nickel, bauxite, copper, cobalt, manganese, tin, and zinc.

Indonesia issued Government Regulation (Peraturan Pemerintah) No. 8 of 2025 on Foreign-Exchange Proceeds from Natural-Resource Exports (DHE SDA), amending PP No. 36/2023. President Prabowo Subianto announced the policy at Merdeka Palace on 17–18 February 2025 and the regulation takes effect on 1 March 2025. It mandates that exporters of non-oil- and-gas mining, plantation, forestry, and fisheries products with export-proceeds value of USD 250,000 or more per shipment retain 100 percent of those foreign-exchange proceeds inside Indonesia's financial system for 12 months — sharply up from the prior 30 percent for 3 months under PP 36/2023. Oil-and-gas exporters remain on the earlier 30 percent / 3-month regime. Permitted in-period uses include rupiah conversion at the holding bank, payment of state obligations in foreign currency, dividend distribution, payment for imported raw materials and capital goods unavailable domestically, and servicing of foreign-currency capital-expenditure loans. Non-compliance carries administrative sanctions including suspension of export services. The government has projected the measure could lift retained foreign- exchange proceeds by USD 80 billion in 2025 and over USD 100 billion on a full 12-month basis.