{
    "success": true,
    "data": {
        "id": 1726655,
        "msgid": "migas-profit-sharing-scheme-to-be-applied-to-mining-ima-warns-of-this-1778237746",
        "date": "2026-05-08 16:40:00",
        "title": "Migas Profit-Sharing Scheme to be Applied to Mining, IMA Warns of This",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Mining",
        "summary": "The Indonesian Mining Association (API-IMA) has voiced concerns over the Energy and Mineral Resources Minister Bahlil Lahadalia's plan to extend the oil and gas profit-sharing model to the mining sector, highlighting fundamental differences in business characteristics, investment patterns, risks, regulations, and permitting mechanisms between the two industries. IMA Executive Director Sari Esayanti emphasised that mining's unique complexities per commodity necessitate distinct fiscal policies and state revenue mechanisms, warning that implementing production sharing contracts (PSC) could pose significant challenges due to variances in business cycles, risk profiles, costs, and operations. The association stressed the need for policy stability on financial obligations to sustain investments and operations amid ongoing adjustments like changes to DHE, royalties, HPM, export duties, and B50 implementation, underscoring that consistency is vital for Indonesia's mining competitiveness in global dynamics and supporting downstreaming and energy transition goals.",
        "content": "<p>The Indonesian Mining Association (API-IMA) has spoken out regarding\nthe Energy and Mineral Resources Minister Bahlil Lahadalia\u2019s plan to\napply the oil and gas (migas) profit-sharing scheme to the mining\nsector. Fundamentally, IMA views that the mineral and coal mining\n(minerba) industry has very different business characteristics compared\nto the oil and gas (migas) industry, both in terms of business models,\ninvestment patterns, risk levels, regulations, and permitting\nmechanisms. API-IMA Executive Director Sari Esayanti explained that the\nminerba mining industry has a high level of complexity with varying\ncharacteristics for each commodity. This condition makes the fiscal\npolicy approach and state revenue mechanism in the minerba sector unable\nto be equated with the migas sector. \u201cThe minerba mining industry has\nunique characteristics with different levels of complexity for each\ncommodity. This fundamental difference is why many countries apply\nroyalty and fiscal systems that differ from the migas sector,\u201d said Sari\nin a written statement on Friday (8\/5\/2026). IMA assesses that the\napplication of a profit-sharing scheme like the production sharing\ncontract (PSC) in the migas sector will face significant challenges if\nimplemented in the minerba mining sector. This is due to the fundamental\ndifferences in business cycles, risk profiles, cost structures, and\noperational mechanisms between the two sectors. Furthermore, IMA\nemphasises the importance of policy stability, particularly regarding\ncompanies\u2019 financial obligations, to maintain the sustainability of\ninvestments and operations in the national mining industry. \u201cWe hope for\nstability in financial obligations so that the investment climate\nremains conducive and mining operations can proceed sustainably.\nCurrently, the industry faces various policy adjustments such as changes\nto DHE, royalties, HPM, export duties, and the implementation of B50,\nwhich add to the operational challenges for mining companies,\u201d added\nSari. IMA believes that policy certainty and consistency are key factors\nin maintaining the competitiveness of Indonesia\u2019s mining industry,\nespecially amid global dynamics and the increasing need for long-term\ninvestments to support national downstreaming and energy transition.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/migas-profit-sharing-scheme-to-be-applied-to-mining-ima-warns-of-this-1778237746",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}