Mining Issuers Anxious as Government Considers Hiking Mineral Mining Royalties
Mining issuers are in a wait-and-see mode amid the government’s actions through the Ministry of Energy and Mineral Resources (ESDM), which plans to review an increase in mineral mining royalties via revisions to PP 19/2025.
The BRI Danareksa Sekuritas team views the new regulation as potentially pressuring mining issuers’ margins. The government is currently reviewing the increase in mineral mining royalties through revisions to PP 19/2025, while also opening options for implementing a production-sharing scheme similar to the oil and gas sector for mining.
“The potential impact on mining issuers includes one where profit margins could be pressured by the increase in royalty costs,” wrote the BRI Danareksa Sekuritas team on Friday (9/5/2026).
Additionally, according to BRI Danareksa Sekuritas, regulatory uncertainty could hold back expansions and investments by mining issuers. Market sentiment towards the mining sector will also tend to be negative in the short term.
“However, on the other hand, this policy could increase state revenues amid high global commodity prices,” stated BRI Danareksa Sekuritas.
Previously, this proposal caused the Composite Stock Price Index (IHSG) to close down by up to 2.86% in Friday’s trading at the end of the week (8/5/2026). Several shares of mineral mining issuers experienced declines.
Several shares such as TINS, for example, fell by up to 14.88% in Friday’s trading. Then INDY shares dropped 14.82%, INCO shares fell 13.89%, ARCI dropped 13.71%, and MDKA shares weakened 13.12%.
On the other hand, Head of Research at Kiwoom Sekuritas, Liza Camelia Suryanata, stated that the IHSG is still not strong enough to reverse direction, with the introduction of this mineral mining royalty policy.
According to her, market participants must also currently pay attention to other external factors such as the direction of the US-Iran conflict, world oil prices, rupiah stability, and the latest domestic policies regarding the increase in mineral mining royalties through PP No. 19/2025, which could pressure margins in certain mining sectors.