{
    "success": true,
    "data": {
        "id": 1719451,
        "msgid": "bahlil-reviews-application-of-upstream-oil-and-gas-profit-sharing-scheme-to-mineral-coal-mining-1777982000",
        "date": "2026-05-05 18:25:05",
        "title": "Bahlil Reviews Application of Upstream Oil and Gas Profit-Sharing Scheme to Mineral-Coal Mining",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Mining",
        "summary": "Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, has announced that the government is exploring the adoption of profit-sharing models from the upstream oil and gas sector, such as Production Sharing Contracts (PSC) with Cost Recovery and Gross Split, to the mineral and coal mining industry. This initiative follows a meeting with President Prabowo Subianto, focusing on restructuring the national mining sector to ensure majority state ownership in line with Article 33 of the 1945 Constitution. The move aims to maximise state revenues from natural resources while retaining the concession system but optimising profit distribution to favour the government.",
        "content": "<p>Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has\nrevealed that the government is studying the implementation of a\nprofit-sharing scheme similar to that in the upstream oil and gas\n(migas) industry for the mineral and coal (minerba) mining sector as\nwell. He made this statement after meeting with President Prabowo\nSubianto in a limited meeting at the State Palace on Tuesday (5\/4\/2026).\nIn that meeting, one of the main focuses of discussion was the\nrestructuring of the national mining sector. \u201cWe discussed the future\narrangement of mining that must be mostly owned by the state. And that\nis related to the implementation of Article 33 (of the 1945\nConstitution),\u201d Bahlil explained at the State Palace on Tuesday\n(5\/5\/2026). According to Bahlil, the government wants to ensure that the\nmanagement of natural resources, both old and new mines, can provide\nmaximum contribution to state revenues. At least, one of the options\nbeing studied is to adopt a cooperation pattern similar to that applied\nin the upstream migas sector for mining. In the upstream migas world,\nthere are two cooperation contract schemes: Production Sharing Contract\n(PSC) Cost Recovery and PSC Gross Split. Both types of contracts are\nforms of cooperation between the government through the Special Task\nForce for the Implementation of Upstream Oil and Gas Business Activities\n(SKK Migas) and investors. \u201cAnd we will use examples like the\nprofit-sharing from our migas management. Our migas has Cost Recovery,\nhas Gross Split; perhaps those patterns that we will try to exercise to\nbuild cooperation with the private sector,\u201d Bahlil clarified.\nNevertheless, he emphasised that the concession scheme in the management\nof mineral and coal mining will still be maintained. \u201cStill concessions,\nbut we will optimise for income so that it is balanced with the state,\nand the state should get a larger portion,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bahlil-reviews-application-of-upstream-oil-and-gas-profit-sharing-scheme-to-mineral-coal-mining-1777982000",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}