Indonesia’s finance minister says ready to levy nickel export tax

The government’s plan to impose a nickel export tax could soon be implemented. This was made directly by Finance Minister (Menkeu) Sri Mulyani at a press conference by the Financial System Stability Board (KSSK).

Sri Mulyani said the export tax on nickel and ferronickel is a policy support measure by the government to increase the downstream mining industry including nickel.

“With an export tax on nickel and ferronickel exports, we will support the government’s overall policy of increasing downstream production,” Sri Mulyani said on Thursday (Nov 3, 2022).

Regarding the implementation of the nickel export tax, Sri Mulyani said her agency is currently in discussions with the Minister of Economy (Coordinating Minister) and relevant ministers. “Because the export tax is not only used for national finances, but also a tool to strengthen the structure of Indonesia’s economy,” Sri Mulyani said.

Sri Mulyani added that the government’s move to develop nickel downstream could lead to Indonesia’s balance of payments. Therefore, the trade account becomes better because the exports that take place are not only raw materials, but also add value through downstream.

“This creates added value and enhances the external resilience and structure of the Indonesian economy,” Sri Mulyani said.