Bahlil Delays Mining Royalty Implementation After Receiving Business Input
Energy and Mineral Resources Minister Bahlil Lahadalia has delayed the implementation of mining royalties for copper, tin, nickel, gold, and silver commodities to develop a better formulation.
“After hearing input from the public and business friends, I will put this on hold to build a good formulation that is mutually beneficial,” Bahlil stated when met at the Ministry of Energy and Mineral Resources office in Jakarta on Monday, 11 May 2026, as quoted by Antara.
The new royalty formulation, he said, will be pursued to become one that benefits both the state and businesses.
Bahlil conveyed that the public hearing session on 8 May 2026 regarding the proposed changes to royalty rates for copper, tin, nickel, gold, and silver commodities was for socialisation and not yet a decision.
“(The June target) we are still considering again. Even if we have to find an ideal formulation, it must not harm businesses but also allow us to optimise state revenue,” Bahlil said.
The statement responds to the Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (BEI), which opened weaker on Monday morning by 9.46 points or about 0.14 percent to the level of 6,959.94.
Equity Analyst at PT Indo Premier Sekuritas (IPOT), Hari Rachmansyah, in Jakarta on Monday, assessed that the JCI’s movement over the next three trading days will be heavily influenced by global geopolitical dynamics and commodity royalty tariff policies.
According to Hari, the policy is no longer mere discourse because it is targeted to take effect in June 2026. He explained that of all the affected commodities, gold records the most significant percentage increase in the tariff at the lower bound, reaching up to 100 percent.
That condition is seen as providing direct pressure amid gold prices that remain at high levels globally.
Meanwhile, tin is assessed as the commodity most severely impacted overall because the tariff increase occurs at both ends of the royalty range simultaneously.