Indonesia approved new export taxes on semi-processed nickel products and coal shipments, with rates still under discussion, Bloomberg reported on March 25. Nickel prices spiked following the announcement, rising by 2.7% on the London Metal Exchange.

Indonesia is facing rising fiscal pressure as higher oil prices increase fuel subsidy and import costs, in addition to increased public spending on policy priorities like the free school meal program and military modernization, prompting efforts to extract more revenue from commodity exports. At the same time, the tax builds on Indonesia's existing ban on raw nickel ore exports by now targeting intermediate processed products in a bid to push in-country nickel producers further up the manufacturing value chain.