Bahlil Lahadalia: Mineral and Coal Revenue-Sharing System Cancelled

The Minister of Energy and Mineral Resources (ESDM), Bahlelse Bahlil Lahadalia, stated that the government will no longer implement the gross split or revenue-sharing scheme in the mineral and coal sectors. “Based on regulations and instructions from the President, the gross split calculation is only applied to the oil and gas sector,” Bahlil told reporters at the parliamentary complex on Monday, 8 June 2026.

Previously, plans to implement a revenue-sharing scheme in the mineral and coal sector emerged following a meeting between Bahlil and President Prabowo Subianto on Tuesday, 5 May 2026. During that meeting, Bahlil indicated that the government was examining various methods to increase state revenue from the natural resources sector. One option under consideration was adopting the revenue-sharing pattern currently used in the upstream oil and gas sector.

“In the oil and gas sector, there is cost recovery and gross split. We may attempt to exercise those patterns with private parties,” Bahlil said. Currently, state revenue from the mineral and coal sector still relies on the royalty system. Gita Mahyarani, Director of the Indonesian Coal Mining Association, explained that there are fundamental differences between the mineral/coal industry and the oil and gas industry, meaning the revenue mechanisms for the two sectors cannot be equated. According to Gita, the revenue-sharing scheme in the oil and gas sector was implemented to replace cost recovery, which was previously borne by the state and later transferred to investors. “Meanwhile, in the coal sector, there has never been cost recovery. All costs, from exploration to sales, are borne by the company from the outset,” she added.