Indonesia: Govt delays full raw material export control to 2027; NPI excluded

• Authorities have introduced a transition phase till 31 Dec’26
• Ferro nickel to remain under existing ferro alloy export regulation

SteelDaily: Indonesia has postponed the full implementation of its state-controlled natural resource export mechanism to 1 January 2027, easing concerns across the nickel and stainless steel supply chain. The government also excluded nickel pig iron (NPI), a major export commodity linked to stainless steel production, from the proposed monopoly export framework.

Earlier, Indonesia planned to implement a single-window export system through state-run agency PT Danantara Sumberdaya Indonesia (PT DSI) from September 2026. However, following industry concerns over potential market disruptions, authorities introduced a transition phase from 1 June to 31 December 2026.

During the transition period, private exporters will continue normal export operations but must submit export contracts and invoices to PT DSI for verification. The government is also expected to introduce a hybrid management framework involving both state and private participation before full implementation in 2027.

NPI excluded from export controls

Indonesia’s Coordinating Ministry for Economic Affairs confirmed that NPI products will remain outside the government’s export concentration policy. Market participants viewed the decision as a major relief for the stainless steel industry, given Indonesia’s dominant role in global nickel supply.

Industry sources indicated that concerns over financing requirements, blending operations, and limited state-sector expertise in handling large-scale nickel exports influenced the government’s decision. However, ferronickel products containing 20-40% nickel will continue to remain under the existing ferroalloy export regulations.

Local mining and nickel industry associations welcomed the postponement and exemption, although market participants stated that clarity on technical guidelines and implementation procedures will remain critical in the coming months.

Outlook

The postponement of Indonesia’s export control mechanism and exclusion of NPI are expected to ease immediate supply concerns in the global nickel and stainless steel market. However, policy uncertainty and future regulatory changes may continue to keep market sentiment cautious.

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