Gotrade News - Indonesia's Ministry of Energy and Mineral Resources (ESDM) issued Decision No. 144/2026, revising the mineral benchmark price (HPM) framework for multiple commodities. The regulation takes effect April 15, 2026, amending the previous ministerial decision 268.K/MB.01/MEM.B/2025.
The revision adjusts the corrective factor and adds supplementary minerals to the nickel ore HPM. It also reduces the silica factor in bauxite ore pricing and changes the measurement unit from US$/dry metric ton to US$/wet metric ton.
Key Takeaways:
- ESDM's HPM revision covers 10 minerals including nickel, bauxite, cobalt, copper, and iron sand, effective April 15, 2026.
- PT Freeport Indonesia partially reopened Grasberg Block Cave; blocks 2 and 3 resumed operations while block 1 remains shut until Q1 2027.
- ANTAM targets nickel ore output of 18.1M tons (+12.7%) and gold of 935 kg (+25.8%) in its 2026 RKAB production plan.
The revised HPM applies to nickel ore, bauxite, cobalt, lead, zinc, copper, manganese, chromium, iron concentrate, and iron sand. This broad scope signals a systematic effort to realign Indonesia's mineral pricing to reflect wet-weight extraction realities.
Separately, PT Freeport Indonesia (PTFI) resumed limited operations at Grasberg Block Cave (GBC) after a landslide in September 2025 forced a full shutdown. CEO Tony Wenas confirmed that mining blocks 2 and 3 have restarted with restricted capacity.
Block 1 of GBC remains closed and will undergo rehabilitation starting May 2026. The repair program targets completion in Q1 2027, meaning full production capacity at Grasberg will not be restored before early next year.
Investors tracking PTFI's operations often reference parent company Freeport-McMoRan (FCX) as a proxy for exposure to Indonesian copper and gold output. The partial GBC reopening is an early recovery signal, though a full return to pre-landslide capacity remains months away.
On the production front, PT Aneka Tambang (ANTAM) submitted an ambitious 2026 Work Plan and Budget (RKAB) to regulators. The company targets nickel ore production of 18.1 million tons, up 12.7% from its 2025 output.
ANTAM also targets gold production of 935 kilograms in 2026, a 25.8% increase from 743 kg recorded the prior year. Bauxite output is set to rise sharply to 4.9 million wet metric tons, approximately 70% above the 2.8 million tons produced in 2025.
Director Untung Budiharto stated that all targets were set in accordance with the applicable RKAB regulatory framework. However, the bauxite RKAB for subsidiary PT Mega Citra Utama remains pending ministerial approval, introducing some execution risk.
Global Market Context
Global nickel prices remain subdued amid persistent oversupply from Indonesian smelters and sluggish demand from Chinese battery manufacturers. The HPM revision may influence how Indonesian ore is priced relative to competing suppliers in the Philippines and New Caledonia.
Investors monitoring broader mining sector exposure often watch Vale (VALE) and BHP (BHP) alongside regional producers for commodity direction. Nickel, copper, and gold price trends remain the primary drivers of profitability for Indonesian mining names.
The combination of regulatory repricing, partial Grasberg recovery, and ANTAM's elevated output targets paints a mixed but cautiously constructive picture. Investors should watch for ANTAM's RKAB approval update and the Grasberg block 1 rehabilitation timeline as near-term catalysts.
Sources:
- ESDM Revises Mineral Benchmark Prices Effective April 15, 2026 - Bloomberg Technoz
- Freeport Indonesia Partially Reopens Grasberg Block Cave - Bloomberg Technoz
- ANTAM Sets Nickel Ore Target at 18.1 Million Tons for 2026 - Bloomberg Technoz
