Indonesia Nickel & Mineral Export Ban 2026: What Raw-Material Buyers Must Know
Indonesia holds ~22% of global nickel reserves and produced ~55% of world mined nickel in 2025. Since President Jokowi's 2020 ore ban and President Prabowo's 2024 extension, unprocessed exports of nickel, bauxite, tin, and copper concentrate are prohibited under the hilirisasi (downstreaming) policy. Here's what international buyers can actually source in 2026.
1. What's Banned vs. What's Exportable
| Material | Raw ore export | Processed export |
|---|---|---|
| Nickel (laterite ore) | Banned since 2020 | ✅ NPI, FeNi, MHP, MSP, matte, Class 1 |
| Bauxite | Banned since June 2023 | ✅ Alumina, aluminum ingot |
| Copper concentrate | Banned June 2024 (Freeport exemption to 2026) | ✅ Refined cathode |
| Tin ore | Restricted — must ship as ingot | ✅ Refined tin (Mentok) |
2. The Nickel Product Ladder — What You Actually Buy
- NPI (Nickel Pig Iron) — 10–14% Ni, for Chinese stainless mills
- FeNi (Ferronickel) — 20–40% Ni, higher-grade stainless
- MHP (Mixed Hydroxide Precipitate) — 35–42% Ni, EV battery feed
- MSP (Mixed Sulfide Precipitate) — battery precursor
- Class 1 Nickel (>99.8%) — LME-deliverable, battery/plating
- Nickel Matte — 70–75% Ni, sulfate precursor
EV battery buyers (CATL, LG, Ford) target MHP and Class 1 sulfate. Stainless buyers take NPI/FeNi.
3. Where It's Made — the IMIP/IWIP Reality
| Industrial park | Location | Capacity | Operators |
|---|---|---|---|
| IMIP (Morowali) | Central Sulawesi | ~4M MT Ni/yr | Tsingshan + local JV |
| IWIP (Weda Bay) | North Maluku | ~2.5M MT Ni/yr | Tsingshan, Huayou |
| Obi Island (Harita) | North Maluku | 120K MT MHP | Lygend/Harita |
| Pomalaa | Southeast Sulawesi | 120K MT MHP | Vale + Ford + Huayou |
4. Landed-Cost Snapshot — MHP Sulawesi → Rotterdam
| Line | USD/MT (contained Ni) |
|---|---|
| Ex-works IMIP | 13,800 |
| Inland to Kendari port | 220 |
| Ocean freight to EU | 480 |
| Insurance + docs | 90 |
| CIF Rotterdam | ~14,590 |
Benchmark: LME nickel cash Q1 2026 ≈ USD 16,200/MT. MHP typically prices at 65–75% of LME on contained Ni.
5. Bauxite & Alumina — the Kalimantan Play
With the 2023 bauxite export ban, buyers now source alumina from Mempawah (BAI, Antam) and Kuala Tanjung (Inalum). Chinese and Middle Eastern smelters take 70% of output. Small parcels (< 20,000 MT) route through Singapore consolidators.
6. What TUSKO Handles for Raw Material Buyers
Our Jakarta desk supports KYC on IUP/IUPK license holders, MSDS + COA validation, port surveying via SGS/CCIC, and CBAM-compliant origin documentation for EU importers. See our Malaysia Electronics & PCBA Sourcing 2026 guide for downstream battery-cell packaging context and our SEA Non-Ferrous Scrap (Copper/Aluminum/Brass) piece for the recycled-metal counterpart.
Frequently Asked Questions
Q: Can I still import Indonesian nickel ore to China? A: No. The 2020 ban is absolute — any cargo declared as raw laterite will be blocked at Indonesian port. Only NPI, FeNi, MHP, matte, and Class 1 are exportable.
Q: What's the difference between MHP and MSP for battery buyers? A: MHP (hydroxide) is more common and cheaper to refine into nickel sulfate. MSP (sulfide) is preferred by some Korean cell makers for lower impurity profile.
Q: Is Indonesian nickel CBAM-compliant? A: MHP and Class 1 refined at HPAL plants (Harita Obi, Pomalaa) have significantly lower CO2e than NPI. Ask for verified GHG intensity data — Chinese-operated RKEF NPI can exceed 60 tCO2e/t Ni.
Q: Minimum contract size for MHP? A: 500 MT contained Ni per parcel (~1,300 wet MT) for direct offtake. Smaller lots trade via Singapore metal traders at 3–5% premium.