Amid claims that bauxite from state miner PT Aneka Tambang (Antam ) is not selling due to export restrictions, Energyand Mineral Resources (ESDM) Minister Bahlil Lahadalia said he would review the progress but defended the current export ban.

“There’s no bauxite export. If smelters don’t want to buy, I’ll need to check that,” Bahlil said on Friday, April 2, 2025.

The government has enforced a strict domestic processing policy requiring sales through domestic reference pricing (HPM), which some lawmakers claim has disrupted market absorption.

As reported by bisnisindonesia.com, Antam has been unable to sell its washed bauxite and ferronickel (FeNi) products since April 1, 2025, due to a new government pricing regulation. The regulation mandates the use of government-determined benchmark prices (HPM) for metal minerals and coal sales, as stipulated in the Minister of Energy and Mineral Resources (ESDM) Decree No. 72.K/MB.01/MEM.B/2025.

Effective March 1, 2025, the decree requires holders of mining business licenses (IUP/IUPK), including contract of work (KK) and coal contract of work (PKP2B) holders, to sell metal minerals and coal at or above the benchmark mineral price (HPM) or benchmark coal price (HPB). HPB is based on the coal reference price (HBA), while HPM serves as the minimum price for mineral sales.

Antam’s President Director, Nico Kanter, said during a hearing with Commission XII of the House of Representatives (DPR) on April 30, 2025 that the company has ceased bauxite sales because no buyers are willing to pay the government-mandated HPM.

“Since April 1, we have stopped selling because when we tried offering to buyers, there were no buyers or smelters willing to pay the HPM. It makes them unprofitable,” Nico said as quoted from the YouTube broadcast of the Commission XII hearing.

He emphasized that HPM is too high for buyers and disrupts previous business-to-business (B2B) transaction flexibility. He also warned that domestic alumina smelters, which rely on bauxite as raw material, are also halting purchases due to the unfeasible pricing, potentially threatening their operations.

In addition, the regulation could impact state revenue. With no sales occurring, Antam is not paying royalties. “Because we’re not selling, there is no royalty payment to the state either,” Nico cited.

The impact goes beyond bauxite. Antam’s ferronickel sales have also come to a halt since April 1, as no buyers are willing to pay the minimum HPM. “Besides bauxite, our smelter business, especially for ferronickel, has also stopped due to the HPM,” Nico said.