Bahlil Guarantees No Contract Changes in Mining Sector
The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has provided guarantees of legal certainty for business players in the mineral and coal (minerba) mining sector. This follows issues regarding plans to adapt investment schemes from the oil and gas sector to the mining sector.
Bahlil emphasised that the government is committed to maintaining existing regulations, particularly in the minerba sector, which will not undergo any changes at this time. “For the minerba sector, there will be no changes at all. Therefore, it is important for me to state this to provide assurance that existing rules will not change indefinitely. It is my duty to maintain that,” Bahlil stated during a press conference at the DPR RI Building, Jakarta, on Monday (8/6/2026).
Initially, there were plans to adapt the revenue-sharing scheme used in oil and gas, such as the gross split, for the minerba sector; however, this plan has been cancelled. Consequently, Bahlil requested that entrepreneurs do not need to worry about changes to calculation formulas mid-way through operations.
“First, to the media, the system within the ESDM that adopts the gross split school of thought only applies to the oil and gas sector. I repeat, based on regulations and the President’s direction, the gross split calculation is only for the oil and gas sector,” he added.
This certainty covers all mining business activities, including existing contracts and future investment plans. The government views regulatory consistency as a key factor in providing business certainty for mining licence holders in the country. “For those currently holding existing mining business licences, there are no changes to the rules. Moving forward, we will use the same regulations,” he added.
“I consider this official information from the state on behalf of the President. The Minister of ESDM is conveying this so that there is no more debate or misleading information,” he concluded.
The Indonesian Mining Association (API-IMA) appreciated the government’s decision to cancel the plan to apply oil and gas revenue-sharing schemes to the mineral and coal sector. This move is considered highly appropriate and crucial to eliminate issues and plans that could disrupt investment.
Executive Director of API-IMA, Sari Esayanti, emphasised that the minerba mining industry has business characteristics that are very different from the oil and gas industry. “The minerba mining industry has unique characteristics with different levels of complexity for each commodity. This fundamental difference is why many countries apply royalty and fiscal systems that differ from the oil and gas sector,” said Sari.
Through this cancellation, the IMA hopes the government can achieve stability in fiscal policy and corporate financial obligations to ensure the sustainability of investment and mining industry operations. This stability is much needed as the mining industry currently faces various policy adjustments and new operational challenges, including the implementation of One-Door Export rules, Export Proceeds (DHE), adjustments to royalties and Mineral Reference Prices (HPM), Export Duties, and the mandatory implementation of B50 biodiesel.
IMA emphasised that government policy certainty and consistency are the primary keys to maintaining the competitiveness of Indonesia’s mining industry. “This is very important, especially amidst the increasing need for long-term investment to support the downstreaming agenda and the national energy transition,” Sari added.