Jakarta. Indonesia is preparing plans to raise royalty rates on several critical mineral commodities, including copper, nickel, tin, gold, and silver, as the government seeks to optimize state revenue from the mining sector, Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday.

Bahlil said the government was still gathering public feedback before formally implementing the proposed increases, stressing that policymakers aimed to avoid placing excessive pressure on the mining industry.

According to Bahlil, the government is carefully considering input from mining companies and other stakeholders before finalizing the policy.

“A few days ago, our team conducted an exercise. The mandate under the law is that every regulation we prepare must begin with an exercise and public introduction to obtain feedback from industry players,” Bahlil told reporters in Jakarta.

Mining royalties are currently regulated under Government Regulation No. 19 of 2025, meaning any increase would require revisions to the existing regulation.

Under a draft revision published last Friday, tin is expected to face the most significant adjustment in royalty rates. The proposed scheme would raise tin royalties from the current 3–10% range to between 5% and 20%, depending on global benchmark mineral prices.

Based on the draft, a 5% royalty would apply if benchmark prices fall below $20,000 per ton. The rate would increase to 7.5% for prices between $20,000 and $30,000, 10% for $30,000–35,000, 12.5% for $35,000–40,000, 15% for $40,000–45,000, and 17.5% for prices between $45,000 and $50,000.

Bahlil said the ministry was recalculating the proposed framework to ensure the policy could accommodate the country’s strategic interests while maintaining investment sustainability in the mining sector.

He added that there is currently no fixed timeline for when the revised regulation will be signed and formally implemented.

“Once again, I want to stress that what has been published recently is not yet a final decision. It is still part of the public consultation process to gather input,” Bahlil said.

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