Mining Profit Sharing Scheme to Mirror Oil and Gas System, Here's the Objective

The Ministry of Energy and Mineral Resources (ESDM) is still discussing plans to apply the oil and gas production sharing scheme to the mining sector. However, the review is still under internal government discussion. Deputy Minister of ESDM Yuliot Tanjung explained that the evaluation covers various technical and financial aspects related to the government’s future strategic targets. One of the objectives of adopting the scheme is to provide legal certainty and business certainty for entrepreneurs. “It is still under discussion. It is currently being reviewed by the Directorate General of Minerals and Coal. This is based on technical and economic studies and also considers state revenue,” he said at the Ministry of ESDM Office in Jakarta on Friday (5/6/2026). The government considers the adjustment of the profit-sharing system important to accelerate the security of national natural resources. Integrated regulations are expected to create a more stable and competitive investment climate for mining industry players in the future. “If we look at the targets, we are certainly accelerating efforts for security, and there must be legal certainty and business certainty for business actors,” he stated. The plan to adjust the profit-sharing scheme includes an evaluation of the proposed division proportion, one of which is the rumour of a 70:30 split. The government emphasised that any regulatory changes must have a strong foundation to create a more stable business climate in the future. The government assured that the transformation process for the mining profit-sharing system will not be decided unilaterally. Yuliot stressed that the results of the in-depth study will be brought to a higher level for a final agreement. “It will be discussed in a cabinet meeting. So it is the cabinet meeting that decides,” he concluded. Previously, Director General of Minerals and Coal Tri Winarno also responded to circulating reports that the gross split scheme is in the range of 70:30. Although it has not been elaborated clearly, the government is evaluating all possible schemes to be implemented. “The evaluation covers all possibilities. But it is not only about that (70:30), it is not specific,” he said at the DPR RI Building on Thursday (4/6/2026). However, to date, there has been no final decision regarding the plan. Tri explained that his party is still evaluating mining governance, including Mining Business Permits (IUP) and so forth. “What is clear is this, regarding IUP and others, we will evaluate. Actually, whether the state revenue, the state’s share, is in accordance with Article 33 or not, that is roughly the question,” he concluded.