Indonesian Political, Business & Finance News

Bahlil Prepares New Mining Revenue-Sharing Scheme, Here Are the Details

| Source: CNBC Translated from Indonesian | Mining
Bahlil Prepares New Mining Revenue-Sharing Scheme, Here Are the Details
Image: CNBC

Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has revealed that the government is studying the implementation of a new revenue-sharing scheme in the mining sector. One of the options under discussion is a model similar to the revenue-sharing approach used in the oil and gas (migas) sector.

He made this statement after meeting with President Prabowo Subianto. In that meeting, one of the main focuses was the restructuring of the national mining sector.

“We discussed the future arrangement of mining, which must be majority-owned by the state. This relates to the implementation of Article 33,” Bahlil said at the State Palace, quoted on Wednesday (6/5/2026).

According to Bahlil, the government wants to ensure that the management of natural resources, both old and new mines, provides maximum contribution to state revenues.

At least, one option being studied is to adopt a cooperation pattern similar to that in the upstream migas sector. In the upstream migas world, there are schemes known as cost recovery and gross split, which have been used in cooperation contracts between the government and the private sector.

“And we will use the example of the revenue-sharing in our migas management. Our migas has cost recovery, gross split; perhaps those patterns will be tried to be exercised to build cooperation with the private sector,” Bahlil said.

Nevertheless, he emphasised that the concession scheme in the management of mineral and coal mining will be retained. “It remains a concession, but we will optimise it for revenue so that it is balanced with the state, and the state should get a larger share,” he said.

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