Indonesian President Joko Widodo confirmed in an interview with Bloomberg that a tax could be imposed on nickel exports this year.
The announcement comes after a government official announced earlier this year that it is working on imposing taxes on exports of nickel battery iron and ferronickel. The rapid transformation of the world into electric vehicles has increased the demand for metals used in batteries such as nickel and lithium.
Indonesia has about a quarter of global nickel reserves. The country is also the largest nickel exporter.
It is stated that the tax that is planned to be introduced may reduce the revenues to be obtained from sales abroad in the short term, but may increase the prices on a global scale.
Shares of Asian nickel producers rose after the news.
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