Firm Stance! Bahlil Postpones Increase in Gold, Copper, Tin-Nickel Royalty Rates
Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has firmly stated that the implementation of the royalty rate increase for commodities such as gold, copper, nickel, tin, and others will be postponed.
Previously, the Minister of Finance, Purbaya, had indicated that the policy to raise royalty rates for mining commodities would proceed in June 2026, having been discussed with President Prabowo Subianto, with a new Government Regulation (PP) to be issued.
“Perhaps it will start taking effect in early June. If I’m not mistaken, is it June? June,” said Purbaya to reporters on Monday (11/5/2026).
Meanwhile, Minister Bahlil acknowledged that in recent days, his ministry had conducted exercises and socialisation regarding the planned royalty rate changes. This was done to gather input from business actors before the official regulation is issued.
From this socialisation, said Bahlil, the government has received various responses from entrepreneurs and the public regarding the plan. Therefore, Bahlil will re-evaluate the policy formulation to avoid burdening business actors.
“And after hearing input from the public and fellow entrepreneurs, I have received input, 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 benefit,” Bahlil stated firmly.
He also assured that the government will postpone further discussions to find a formulation deemed more appropriate for all parties. This also addresses whether the regulation will be implemented in the coming June.
“Yes, we might think about it again. Even if so, we must find an ideal formulation that does not harm entrepreneurs but also allows us to optimise state revenue,” Bahlil said.
Previously, the Ministry of ESDM 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 Ministry of ESDM.
In the material discussed, the revision of the regulation would set adjustments to royalty rates for various mineral and coal commodities such as copper, gold, silver, nickel ore, and tin.
The following are the proposed royalty rates that were discussed:
Copper
Proposed royalty rate for copper concentrate applied to products of PT AMNT
HMA Copper <7,000 US$/dmt increased to 9% from previous 7%
HMA Copper 7,000 to <10,000 US$/dmt increased to 11% from previous 7.5%
HMA Copper 10,000 to <13,000 US$/dmt increased to 12% from previous 8%
HMA Copper ≥13,000 US$/dmt increased to 13% from previous 10%
Proposed royalty rate for copper cathode applied to products of PT AMNT
HMA Copper <7,000 US$/dmt increased to 7% from previous 4%
HMA Copper 7,000 to <10,000 US$/dmt increased to 8% from previous 5%
HMA Copper 10,000 to <13,000 US$/dmt increased to 9% from previous 6%
HMA Copper ≥13,000 US$/dmt increased to 10% from previous 7%
Gold
Proposed Gold Royalty Rate in the form of adjustment to intervals and rates from HMA 2,500 US/toztothehighestinterval ≥ 5, 000US/toz, to accommodate price surges.
HMA Gold <2,500 US/troyouncechargedat14/troy ounce rate of 7%
HMA Gold 2,500 to <3,000 US/troyouncechargedat15/troy ounce rate of 10%
HMA Gold 3,000 to <3,500 US/troyouncechargedat16/troy ounce rate of 11%
HMA Gold 3,500 to <4,000 US/troyouncechargedat17/troy ounce rate of 12%
HMA Gold 4,000 to <4,500 US/troyouncechargedat18/troy ounce rate of 14%
HMA Gold 4,500 to <5,000 US/troyouncechargedat19/troy ounce rate of 15%
HMA Gold ≥5,000 US/troyouncechargedat20/troy ounce rate of 16%
Silver
Proposed Silver Royalty Rate in the form of change from previous flat 5% rate to progressive rates from the lowest interval HMA < 60 USD/toz to accommodate price increases.
HMA Silver <60 US$/toz charged at 5%
HMA Silver 60 to <80 US$/toz charged at 6%
HMA Silver 80 to <100 US$/toz charged at 7%
HMA Silver ≥100 US$/toz charged at 8%
Nickel Ore
HMA Nickel <16,000 US/tonincreasedto14/ton rate of 14%
HMA Nickel 16,000 to <18,000 US/tonincreasedto15/ton rate of 15%
HMA Nickel 18,000 to <20,000 US/tonincreasedto16/ton rate of 16%
HMA Nickel 20,000 to <22,000 US/tonincreasedto17/ton rate of 18%
HMA Nickel 22,000 to <26,000 US/tonincreasedto18/ton rate of 19%
HMA Nickel ≥26,000 US$/ton at 19%
Tin
Proposed Tin Royalty Rate in the form of adjustment (interval) and rate from HMA 20,000 USD/ton to interval ≥50,000 USD/ton to accommodate price increases.
HMA Tin <20,000 US$/ton increased to 5% from previous 3%
HMA Tin 20,000 to <30,000 US$/ton increased to 7.5% from previous 5%
HMA Tin 30,000 to <35,000 US$/ton increased to 10% from previous 7.5%
HMA Tin 35,000 to <40,000 US$/ton increased to 12.5% from previous 10%
HMA Tin 40,000 to <45,000 US$/ton at 15%
HMA Tin 45,000 to <50,000 US$/ton at 17.5%
HMA Tin ≥50,000 US$/ton at 20%