Ministers Agree to Delay Mining Royalty Hike While Seeking New Formula
Jakarta. Indonesia is delaying planned increases in mining royalties and export taxes after Finance Minister Purbaya Yudhi Sadewa walked back his earlier statement that the new rules would take effect in June 2026, with the government now saying it is still seeking a more balanced policy formula.
Energy and Mineral Resources Minister Bahlil Lahadalia said the proposed changes affecting commodities such as copper, tin, nickel, gold, and silver have been temporarily postponed while officials review their impact on state revenue and investment.
“We discussed several regulatory adjustments, including export taxes on several commodities that had previously been socialized,” Bahlil told reporters at the Attorney General’s Office complex in Jakarta.
According to Bahlil, the government wants to ensure that any future policy can increase state revenue without burdening businesses or weakening investment in the mining sector.
“We agreed to temporarily postpone it while we look for a good formula while still prioritizing the interests of the state and businesses. Both sides must benefit,” he said.
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Indonesia Postpones Mining Royalty HikeIn addition to royalties and export taxes, Bahlil said revisions to the mining sector’s Work Plan and Budget (RKAB) process would continue without disruption.
Separately, Purbaya said the Energy Ministry’s proposals were moving in a positive direction to strengthen non-tax state revenue, particularly from the energy and mining sectors.
“We discussed plans to strengthen non-tax state revenue from the oil, gas, and mining sectors. I think the plans are quite good,” Purbaya said.
Purbaya had previously stated that new mining royalty regulations would take effect in June 2026 after the rules were submitted to the State Secretariat Ministry. However, the statement was later corrected following discussions with Bahlil.
The Directorate General of Minerals and Coal has also held an online public consultation on proposed adjustments to mineral production levies. The government says reforms to non-tax revenue policy in the mining sector are aimed not only at boosting fiscal income but also at improving natural resource governance while maintaining the sustainability of the mining industry.
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