Bahlil: Mining Contract Model Will Not Change Like the Oil and Gas Sector

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has ensured that there will be no changes to mining sector contracts. This statement addresses plans to alter the mining profit-sharing model to resemble the oil and gas sector’s ‘gross split’ and ‘cost recovery’ systems.

“First, the system within the Ministry of Energy and Mineral Resources that adopts the gross split model applies only to the oil and gas sector. I repeat, based on regulations and presidential directives, the gross split is only for oil and gas, while there will be no changes whatsoever in the mineral and coal sector,” Bemma Bahlil stated during a press conference at the DPR Building on Monday (8/6/2026).

“Therefore, it is important that I convey this to provide assurance that existing regulations will not change. It is my duty to protect this indefinitely,” Bahlil asserted.

Furthermore, Bahlil ensured that regarding investment certainty, his department guarantees the availability of all raw materials sourced from the state, particularly for downstreaming processes. “This means that the production capacity under the Work Plan and Budget (RKAB) we grant must be balanced so that the industry can function,” he explained.

Regarding the RKAB, including for coal, the government is closely monitoring trends amidst geopolitical dynamics in the Middle East. Consequently, it is ideal for the government and interested entrepreneurs to work towards creating favourable pricing.