Government Prepares to Revise Royalty Rates for Gold, Copper, Nickel-Tin

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) plans to readjust royalty rates for mineral commodities, including gold, copper, nickel, and tin. This change aims to update the state revenue scheme from the mining sector. As an initial step, the Ministry of ESDM held a public consultation (public hearing) on Friday, 8 May 2026. The meeting discussed the revision of Government Regulation (PP) No. 19 of 2025 on the Types and Rates of Non-Tax State Revenue Applicable to the Ministry of ESDM. In the materials discussed, the revision of the regulation will set adjustments to royalty rates for various mining commodities such as copper, gold, silver, nickel ore, and tin. The policy to be taken also adjusts the commodity cluster for cobalt as a by-product of nickel matte, adjusts the commodity cluster for zinc concentrate and lead concentrate, adds types and royalty rates for iron commodities, adds types and royalty rates for cobalt as an associated mineral in processing and/or refining products other than nickel commodities, and adds types and fixed royalty rates for non-metallic minerals and rocks located more than 12 nautical miles offshore. In the document received by CNBC Indonesia, it is stated that the background for this planned change is the government’s observation of potential windfall profits due to increases in prices of several commodities, such as gold, copper, silver, tin, and nickel. The government also sees the addition and adjustment of rates for several commodities by considering developments in prices and products both nationally and globally. In addition, there has been a study by the Corruption Eradication Commission (KPK) on the imposition of royalties on Economically Valuable/Precious Associated Minerals. Finally, another reason is the directive from leadership to optimise state revenue. Proposed Rates Copper Proposed royalty rate for copper concentrate applied to PT AMNT’s concentrate products - HMA Copper <7,000 US/dmtincreasedto9/dmt increased to 11% from previous 7.5% - HMA Copper 10,000 to <13,000 US/dmtincreasedto12/dmt increased to 13% from previous 10% Proposed royalty rate for copper cathode applied to PT AMNT’s concentrate products - HMA Copper <7,000 US/dmtincreasedto7/dmt increased to 8% from previous 5% - HMA Copper 10,000 to <13,000 US/dmtincreasedto9/dmt increased to 10% from previous 7% Gold Proposed Gold Royalty Rate in the form of adjustment of intervals and rates from HMA 2,500 US/toztothehighestinterval ≥ 5, 000US/toz, to accommodate price surges. - HMA Gold <2,500 US/troyouncesubjectto14/troy ounce rate 7% - HMA Gold 2,500 to <3,000 US/troyouncesubjectto15/troy ounce rate 10% - HMA Gold 3,000 to <3,500 US/troyouncesubjectto16/troy ounce rate 11% - HMA Gold 3,500 to <4,000 US/troyouncesubjectto17/troy ounce rate 12% - HMA Gold 4,000 to <4,500 US/troyouncesubjectto18/troy ounce rate 14% - HMA Gold 4,500 to <5,000 US/troyouncesubjectto19/troy ounce rate 15% - HMA Gold ≥5,000 US/troyouncesubjectto20/troy ounce rate 16% Silver Proposed Silver Royalty Rate in the form of change from previous flat 5% rate to progressive rate from lowest interval HMA < 60 US/toztoaccommodatepriceincreases. − HMASilver < 60US/toz subject to 5% rate - HMA Silver 60 to <80 US/tozsubjectto6/toz subject to 7% rate - HMA Silver ≥100 US/tozsubjectto8/ton increased to 14% from previous HMA Nickel <18,000 US/tonrate14/ton increased to 15% from previous HMA Nickel 18,000 to <21,000 US/tonrate15/ton increased to 16% from previous HMA Nickel 21,000 to <24,000 US/tonrate16/ton increased to 17% from previous HMA Nickel 24,000 to <31,000 US/tonrate18/ton increased to 18% from previous HMA Nickel ≥31,000 US/tonrate19/ton to 19% Tin Proposed Tin Royalty Rate in the form of adjustment (interval) and rate from HMA 20,000 US/tontointerval ≥ 50, 000US/ton to accommodate price increases. - HMA Tin <20,000 US/tonincreasedto5/ton increased to 7.5% from previous 5% - HMA Tin 30,000 to <35,000 US/tonincreasedto10/ton increased to 12.5% from previous 10% - HMA Tin 40,000 to <45,000 US/tonrate15/ton rate 17.5% - HMA Tin ≥50,000 US$/ton rate 20%