On 30 August 2019, the Minister of Energy and Mineral Resources (“MEMR”) issued Regulation No. 11 of 2019 (“MEMR 11/2019”) at the direction of President Jokowi to ensure the continued supply of nickel to develop domestic processing and refining facilities.

Under the previous regulatory framework, nickel ore with less than 1.7% nickel content could continue to be exported until 11 January 2022, provided the mining concession holder:

  • constructed or was in the process of constructing a refinery facility;

  • paid the applicable ore export duty; and

  • obtained an export recommendation from the Director General of Minerals and Coal and an export approval from the Director General of Foreign Trade.

However, the changes introduced by MEMR 11/2019 mean that exports of nickel ore with less than 1.7% nickel content must now end on 31 December 2019.

With the issuance of MEMR 11/2019, all existing export contracts for nickel ore with less than 1.7% nickel content need to be completed by the end of this year. Nickel ore exporters may therefore need to re-visit their long-term nickel ore sales contracts.