By Adianto P. Simamora
The Indonesian government is considering revoking tax holiday incentives for new High-Pressure Acid Leach (HPAL) projects, a move that could greatly affect investment in the country's nickel industry.
Septian Hario Seto, Deputy Coordinating Minister for Maritime and Investment Affairs, revealed during a recent industry meeting in Bali that the government is weighing two options: either canceling new HPAL permits or, more likely, eliminating the tax holiday incentives for these projects.
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Seto noted that the government is still discussing the policy shift internally and did not provide a timeline for the decision.
These tax incentives have been crucial in attracting foreign investment to Indonesia's nickel sector, particularly for initiatives aligned with the country's goals in electric vehicle battery production.
Editing by Reiner Simanjuntak
