Bahlil Postpones Royalty Rate Hike for Gold Mining and Others, Here's the Reason

Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has revealed the government’s reasons for postponing plans to implement an increase in royalty rates for mineral commodities, including gold, copper, nickel, and tin.

According to Bahlil, the material that was socialised by the ESDM Ministry team some time ago is still merely an initial concept and has not yet become part of a Government Regulation (PP).

“Once again, I say that what was socialised is not a decision, but it’s just, so to speak, a public test. There are inputs and such. Well, if the inputs are not good, we will immediately revise it. And once again, I say that it has not become a regulation because that will later become a PP. The PP does not exist yet,” Bahlil stated when met at the ESDM Ministry office on Monday (11/5/2026).

He also assured that his side would not rush to implement the regulation before conducting a more in-depth study and producing a formulation that benefits all parties, both the state and business actors.

“So, I think I will put this on hold to build a good formulation that is mutually beneficial. The state benefits and the entrepreneurs must also benefit,” Bahlil said.

Previously, the Ministry of Energy and Mineral Resources (ESDM) was known to be finalising plans to adjust royalty rates for several mineral commodities. The rate adjustment aims to increase state revenues.

The ESDM Ministry itself held a public consultation (public hearing) on Friday, 8 May 2026. The meeting discussed the revision of Government Regulation (PP) Number 19 of 2025 concerning Types and Rates of Non-Tax State Revenue Applicable to the ESDM Ministry.

In the material discussed, the revision of the regulation will later set adjustments to royalty rates for various minerba commodities such as copper, gold, silver, nickel ore, and tin.