Bahlil Postpones Mining Royalty Increase After Business Owners' Protests

JAKARTA - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has postponed the implementation of mining royalties for copper, tin, nickel, gold, and silver commodities.

The postponement is intended to formulate a new approach deemed more balanced for the state and business actors.

“After hearing input from the public and business friends, I will put this on hold to build a good formula that is mutually beneficial,” Bahlil stated when met at the ESDM Ministry office in Jakarta on Monday (11/5/2026).

Bahlil explained that the public hearing session on 8 May 2026 regarding the proposed royalty rate changes was still in the socialisation stage and not yet a final decision.

“(The June target) we are still considering again. Even if we have to find an ideal formula, it should not harm business owners but also allow us to optimise state revenue,” Bahlil said.

Bahlil’s statement emerges amid market attention to the planned royalty increase for mining commodities.

In Monday morning’s trading, the Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange opened weaker by 9.46 points or about 0.14 percent to the level of 6,959.94.

According to Hari, the market previously viewed the policy not merely as discourse because it was targeted to apply starting June 2026.

He explained that gold is the commodity with the highest percentage increase in royalty rates at the lower boundary, reaching 100 percent.

This condition is seen as adding further pressure amid still high global gold prices.

Meanwhile, tin is said to be the most impacted commodity overall because the rate increase occurs at both ends of the royalty range simultaneously.