Hold! Bahlil Postpones Proposal to Increase Royalty Rates for Gold Mining and Others!
Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has confirmed that the proposal to increase royalty rates for mineral commodities, including gold, copper, nickel, and tin, remains at the public testing stage. Therefore, it has not yet become a final government decision and must be postponed.
Bahlil acknowledged that in recent days, his team had indeed conducted exercises and socialisation regarding the planned changes to royalty rates. This was done to gather input from business actors before official regulations are issued.
“So, I want to say that a few days ago, my team conducted exercises. The mandate of the law is that every regulation we make begins with exercises and socialisation to obtain feedback from stakeholders,” he said when met at the Ministry of ESDM office on Monday (11/5/2026).
Bahlil then revealed that 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 stressed.
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 June.
“Yes, we might think about it again. Even if it does, we must find an ideal formulation that does not harm entrepreneurs but also optimises state revenue,” Bahlil stated.
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 on Types and Rates of Non-Tax State Revenue Applicable to the Ministry of ESDM.
In the material 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.
Purbaya Says Regulation to be Issued in June
Before Minister Bahlil’s statement emerged publicly, Finance Minister Purbaya Yudhi Sadewa had stated that the regulation adjusting royalty rates for mining companies, such as coal and nickel, would take effect in early June 2026.
This regulation has already been discussed with President Prabowo and the presidential regulation (PP) will be issued soon. “It might take effect in early June. If I’m not mistaken, is it June? June,” Purbaya said to reporters on Monday (11/5/2026).
Unfortunately, Purbaya could not yet detail the commodities that would be subject to rate adjustments. However, he revealed that it is likely all mining goods will be subject to rate adjustments.
“We’ll see later for export duties. But according to that, it’s across the board, as Mr Bahlil said when I met him yesterday. Across the board means all mining goods,” he said.